Tech Mahindra bags Rs 500-cr contract from Circle Health

IT services company Tech Mahindra on Thursday said that it has bagged a 10-year strategic IT outsourcing deal from British healthcare company, Circle Health, with an estimated value of around Rs 50 billion (around $79 million or around Rs 500 crore).

The project will be delivered by nth Dimension, a newly formed wholly-owned subsidiary of Tech Mahindra in the United Kingdom.

As a technology partner for Circle Health, Tech Mahindra will be responsible for developing new technologies with an aim of improving patient care, operational delivery apart from reducing costs. It will also develop new IT solutions for Circle's hospitals and national health service (NHS) management contracts, among others.

"This deal is a sign of the times. Healthcare has yet to see the tech-led disruption that we've seen in other sectors, but we think that is about to change. At the same time, there is a big push in UK government policy for transparency and better patient access to data. "while the need for healthcare operators to be efficient has never been higher," Steve Melton, Chief Executive of Circle, said in a statement.

Tech Mahindra presently derives around 10% of its revenues from healthcare clients.