Tech Mahindra bags Rs 2,000-cr deal

MUMBAI: Tech Mahindra has bagged a Rs 2,000-crore deal for end-to-end outsourcing of IT applications and infrastructure from Etisalat DB Telecom, a joint venture between the UAE-based Etisalat and the Dynamix Balwas group. The JV, earlier known as Swan Telecom, is rolling out cellular services across 15 circles in India.

Under the terms of LoI signed by Tech Mahindra and Etisalat DB, the deal will be for a period of 10 years, which will include systems integration, managed services and business support systems and operating support systems. ���The agreement will ensure faster go-to-market and a cost-effective roll-out of services,��� Etisalat said. ET had first reported that Tech Mahindra had won the deal in its edition dated August 26.

In a statement released on Monday, Etisalat DB said: ���Tech Mahindra has the required domain and process expertise with a proven track record as a part of Etisalat���s launch in Egypt. We are confident that Tech Mahindra���s exhaustive pool of IT skills and innovative delivery models will assist us in the forthcoming roll-out of services in India and delivering the best services and customer experience.���

Tech Mahindra CEO Sanjay Kalra said: ���After successfully partnering with Etisalat in Egypt, we look forward to enhancing our relationship in the high growth Indian telecom market,��� he said.

Wipro recently won a similar contract from another new telecom entrant, Unitech Wireless, in which Norway-based telecom operator Telenor holds a majority stake. Multinational IBM already has IT outsourcing contracts with Bharti Airtel, Vodafone and Idea Cellular. Telecom is the biggest IT spender in the private sector in India. Bharti���s $750-million contract with IBM, for instance, has now grown to over $2 billion.