IT solutions provider Tech Mahindra has bagged a major portion of telecom IT outsourcing deal worth Rs.1,500 crore from Etisalat DB Telecom India which is set to make entry in the highly potential Indian telecom sector.

Tech Mahindra recently acquired majority stake in fraud ridden Satyam Computer Services,The UAE based company had already awarded contract to Tech Mahindra and Sony Ericsson in February last year.

Seven other vendors including Wipro Technologies and IBM were in the race to bag the contract but Tech Mahindra emerged as a successful firm as per reports.

However, a Senior Executive at Tech Mahindra expressed ignorance about the development adding, "We do not comment on market speculation."

Tech Mahindra will provide customer billing solutions to Etisalat DB Telecom India (formerly Swan Telecom) owned by UAE based telecom company Etisalat. The company is likely to soon respond to the letter of intent (LOI) as per some confidential sources.

Etislat DB has yet to award contract for IT services for which IBM, Tech Mahindra, Wipro Technologies and Chinese vendor ZTE are making efforts.