Tech Mahindra wins 5-year deal with Finnish retailer; to rebadge 33 employees

MUMBAI: Finnish retail company Stockmann Plc said it signed a five-year deal with Tech Mahindra, which would consolidate the work of 20 vendors and transfer some of its employees to the Indian IT firm.

Stockmann said that 33 of its current employees are expected to transfer to Tech Mahindra on 1 January 2017 under a business transfer agreement. The company did not break out the size of the deal.

The target of the planned changes is to reduce the Finnish firms costs by about 4 million euros annually from 2018 onwards.

The retailer said it would retain about 40 employees responsible for IT portfolio management and development of business processes, applications and digital services for its customers.

"Tech Mahindra has deep knowledge of offering digital services to well-known retail companies worldwide, and we are glad to gain this expertise for the benefit of our customers," Petteri Naulapää, CIO at Stockmann, said in a statement.