by CIO Staff

BT Awards $1B Outsourcing Contract to Indian Firm

Dec 21, 20061 min
IT Strategy

British Telecommunications (BT) has awarded a US$1 billion outsourcing contract to an Indian services company to support the growth of BT’s managed services for businesses worldwide.

Tech Mahindra, of Pune, will add 3,000 to 4,000 new staff during the course of the five-year contract, which also includes services related to BT’s internal IT systems.

The Indian company will establish centers close to the BT customers it serves, although most of the staff additions will be in India to take advantage of the lower cost of staff there, a spokesman for Tech Mahindra said.

BT has a minority stake in Tech Mahindra, holding about 35 percent of the company. BT’s business counts for almost two-thirds of its revenue, not including the new contract.

Tech Mahindra has about 17,000 staff serving telecommunications service providers, equipment manufacturers, software vendors and systems integrators.

-John Ribeiro, IDG News Service (Bangalore Bureau)

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