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Tech Mahindra woos Telstra

Paul Smith (via AFR) | Aug. 13, 2013
Indian outsourcing giant Tech Mahindra has kicked off a week-long Australian charm offensive, with a target of winning new business from Telstra firmly in its sights.

Chief executive David Thodey told reporters last week that this could involve more work conducted offshore.

"We will continue to look at where it's best to put the work because we are an Australian company doing business in Asia and that's the big transition we have to [make] for the future of this company," he said.

"I know it's difficult and I emphasise with people who say 'what about jobs in Australia?' but we've got to grow our business outside Australia and therefore we'll continue to re-balance it."

Asked about Mr Pretty's claims on Monday a Telstra spokeswoman said no big deals had been signed with Tech Mahindra.

"Tech Mahindra aren't engaged in any significant work with Telstra currently, but we understand they are participating in our tender for a new IT Professional Services Panel which is currently under way," she said.

Outsourcing specialist Mohit Sharma, director at Mindfields, said the completion of the merger would help Tech Mahindra win more significant deals in the Australian market and said it needn't focus too heavily on its traditional strength in the telecommunications sector.

"Tech Mahindra has more than 44 per cent of its global revenue from telecom vertical and it is more than 47 per cent in the Asia-Pacific region. This percentage is without having Telstra as one of its clients, whereas other peer IT vendors have less than 15 per cent of their global revenue from the telecom vertical," Mr Sharma said.

"The delay in the merger has been a blessing in a disguise as it has provided enough time to consolidate the offerings, people and the processes of the two companies. The merger will also give a boost to the tarnished brand equity. It might take some time to actually result in new business win but it is definitely the first step towards building the confidence among the user community."


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