It is perhaps one of the biggest contracts ever bagged by the Indian IT company, Tech Mahindra. It has reportedly bagged a contract worth US $700mn from British Telecom (BT) for transferring and improving the IT infrastructure of BT.  This is seen as the largest Indian outsourcing deal ever.

 

Earlier, Tech Mahindra had also won US $350million contract and US $1billion outsourcing deal from BT. According to reports, this is one of the biggest contracts won by Tech Mahindra from BT. British Telecom is Tech Mahindra's largest client and accounts to nearly 60% of its business. The second largest client of Tech Mahindra is AT&T while Motorola and Alcatel-Lucent are some of the important customers.

 

Tech Mahnidra's president CP Gurmani termed the contract as spectacular. He further added that at any given point of time, Tech Mahindra are chasing big deals and long term contracts but this deal is just spectacular. BT owns a 35% stake in Tech Mahindra which had filed an initial public offering earlier this year. Tech Mahindra's shares on the Bombay Exchange were valued at Rs.1,492 ($33.44) per share. This is the latest indication that Western companies are now viewing India's outsourcers as very good alternatives to companies such as IBM and EDS for services.

 

Earlier, in the month of July, European financial services firm Skandia handed India's IT company HCL Technologies a deal worth US $780 million, while last year ABN Amro gathered a five vendor team of outsourcers that included names like TCS, Patni Computers, and Infosys for a $2,2 billion deal.

 

Tech Mahindra has worked with British Telecom (BT) for the past two decades. This outsourcing deal, according to Tech Mahindra managing director Vineet Nayyar, will take the long standing relationship to a whole new level. It also provides support services to the U.S Telecom giant AT&T.