BT slashes Indian IT contracts

Michael Carroll | August 30, 2010

telecomseurope.net

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BT will slash the amount of IT services outsourced to tier one Indian firms by 15% in 2010, in a major shift in strategy designed to cut its IT expenditure.

The operator will cut the amount of work passed to leading Indian tech firms and could recruit second-tier providers, as part of an overall cost-cutting program, India’s Business Standard reports.

BT’s contracts are a valuable commodity for Indian firms, which have taken up to 70% of the £1.2 billion (€1.4 billion) the telco spends on outsourcing each year, the Hindu Business Line said.

Companies including Tech Mahindra, HCL, Tata Consultancy Services and Infosys are all on BT’s books, the news-site reported.

BT pledged to close Indian call centers during negotiations with the Communications Workers Union to avert a walkout by around 50,000 staff in June.

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Michael Carroll