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Tech Mahindra wins IT outsourcing contract

Lezette Engelbrecht
By Lezette Engelbrecht, ITWeb online features editor
Johannesburg, 26 Aug 2009

Tech Mahindra wins IT outsourcing contract

New entrant Etisalat has reportedly awarded an Rs 1500 (R2.4 billion) IT outsourcing contract to Tech Mahindra, says TelecomTiger. Other vendors in the race included names such as Wipro and IBM, reports Business Standard.

The paper reports that a Letter of Intent has already been issued to Tech Mahindra. The contract is for customer billing services and forms 5% to 60 % of the total IT outsourcing contract.

The win for Tech Mahindra should come as a relief and the company may shift its focus in the domestic market. Tech Mahindra is already a formidable force in the global OSS/BSS space. But with the global market reeling under recession, focus on domestic market appears an obvious strategy.

IT outsourcing beats recession

The economic slump has triggered a whole ripple of business process re-engineering decisions, and one of these decisions that seems to be a trend with most contemporary business houses, is the increasing uptake of IT outsourcing, states Outsourcing - Russia.

An increasing number of businesses have resorted to outsourcing their IT processes in a bid to streamline their activities and save on costs.

Due to this, the outsourcing industry has witnessed robust growth rates - the National Outsourcing Association index purports that outsourcing companies are more positive about their outlook today than they were a year ago.

NASA looks to private sector

NASA will rely on contractors to help pick up additional tasks as the US space agency deals with money issues, according to DailyTech.

Facing growing financial issues that may eliminate future missions to the moon and Mars, NASA may be prepared to let private contractors have a larger role in its future space endeavours.

President Barack Obama hasn't made any official decisions regarding the future of NASA, but several unnamed government officials and other space experts claim the private sector will be responsible for a larger amount of NASA-backed missions.

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