New telecom licensee Etisalat DB Telecom has awarded a $400-million (nearly Rs 2,000 crore) IT applications and infrastructure outsourcing contract to Tech Mahindra. The contract is spread over a 10-year period.
Etisalat DB Telecom is a joint venture between the UAE-based Etisalat group (which holds a 45 per cent stake) and India’s Dynamix Balwas Group. Under the agreement, Etisalat DB Telecom and its subsidiary Allianz Infratec have outsourced IT application system and system integration across 15 circles to Tech Mahindra. The prime IT applications involve components in Business Support System (BSS) and Operating Support System (OSS) domain, Etisalat DB Telecom said in a release here today.
Allianz Infratec holds licences and spectrum for Madhya Pradesh and Bihar, while the remaining 13 circles is held through Etisalat DB. “Tech Mahindra has the required domain and process expertise with a proven track record as part of Etisalat’s launch of operations in Egypt. We are confident that Tech Mahindra’s exhaustive pool of IT skills and innovative delivery models will assist us in the forthcoming roll-out of service in India and delivering the best services & customer experience in the market,” a spokesperson of Etisalat DB said. The association with Tech Mahindra would provide speed to market and cost efficiencies for Etisalat DB’s greenfield venture, the release added.
Indian telecom providers have been increasingly outsourcing their IT infrastructure, as it would enable them to be asset-light and concentrate on their core competencies.
