Tech Mahindra Enters 5-Year Application Support Deal With BT Group

Tech Mahindra, provider of solutions and services to the telecom industry Tech Mahindrahas signed up a 5-year application support deal worth over $350 million with UK-based British Telecom (BT) Group.

Under the agreement, Tech Mahindra will provide application maintenance and support services for BT’s business critical BSS (business support system) and OSS (operating support system) applications and platforms.

The total payment of the deal would be made equally over the five years.

Tech Mahindra will deliver services from its high-tech Centers of Excellence (CoE) at facilities in India.

The company will shortly set up a new facility in UK to watch over BT's core business processes.

Tech Mahindra’s Service Excellence and Improvement Group (SEIG), which focused on application maintenance and business activity monitoring (BAM) will deliver business benefits to BT via process harmonization, mechanization and standardization of application services with direct affect on BT's metrics of Right First Time and Cycle Time.

Clive Selley, Managing Director, Wholesale Service Design for BT, told, “This deal links our Application Portfolio performance to our business performance. Tech Mahindra's experience and expertise on both, the business process as well as IT Systems makes it the perfect partner for value realization and achievement of BT's objective to become number one in customer service.”

“The five year period and confirmed business will enable Tech Mahindra to take a long term view on innovation and service excellence,” Mr. Clive added.

Sanjay Kalra, President, Tech Mahindra, stated, “This deal showcases Tech Mahindra’s strengths in delivering business critical services that have so far been hidden under 'business-as-usual' application support. We are delighted at the confidence BT has shown in us and this contract will further strengthen trust and partnership between our two companies.”

Mr. Kalra also said that the agreement would uphold Tech Mahindra’s income from the BT Group in the 60-65% range.

The shares of Tech Mahindra, on Thursday, gained 1.3% at Rs 651.35 on Bombay Stock Exchange (BSE).