Tech Mahindra bags Rs 2000 cr IT deal

Tech Mahindra on Monday pipped IT giants Wipro and IBM to bag a Rs 2,000 crore (Rs 20 billion) outsourcing deal spread over 10 years from new telecom player Etisalat DB, which is in the process starting mobile services in India.

The total value of the deal is around Rs 2,000 crore and the scope of the deal is likely to be spread over 10 years, a statement from Etisalat DB said.

Etisalat DB Telecom (formerly Swan Telecom), is a joint venture between India's Dynamix Balwas Group and UAE-based Etisalat, in which the later holds 45 per cent stake. It has Unified Services Access License in 15 of India's 22 telecom service areas.

A Letter of Intent (LOI) has already been issued to Tech Mahindra, the statement added.

Under the terms of the LOI, Etisalat and its subsidiary would outsource implementation of its end-to-end IT applications and infrastructure including system integration and managed services to Tech Mahindra, it added.

Other IT players such as Wipro and IBM were also believed to be in the race for bagging the contract from Etisalat.