BT offshores more business to India

BT has announced a deal with a long-term Indian outsourcing partner to build its global delivery capabilities.

The deal is expected to take the total business outsourced from BT to telecommunications services provider and India’s eighth largest software exporter Tech Mahindra to £1 billion.

BT has a minority interest in the outsourcer, in addition to an ongoing, 20-year relationship with it.

Tech Mahindra won £500-million worth of BT’s Global Services business in December 2006. This was followed by a BT application support deal worth £175 million signed earlier this year.

This latest deal, worth £350 million over five years, will see the two companies creating and operating a global delivery organisation as part of a systems transformation programme.

BT said it will use and augment the Indian outsourcer’s existing delivery centres around the world to achieve greater flexibility and efficiencies in addressing client requirements.

Tech Mahindra will also continue to provide ongoing services related to BT’s internal systems, processes and re-usable platforms.

Hanif Lalani, BT Group finance director, said: “This is another example of BT sourcing the best skills around the world to deliver outstanding service and value for our customers while contributing further to continued operational efficiencies.”

Vineet Nayyar, Tech Mahindra vice chairman and managing director, added: “We are proud to be BT’s preferred partner for its internal IT requirements and this new opportunity will enable us to assist BT serve their external customers even more effectively.”

BT Global Services is also expected to announce further outsourcing of its networking business to the partner later this summer, in a deal that could be worth as much as £5 billion.

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