Tech Mahindra wins outsourcing deal with STel

Indian outsourcing firm Tech Mahindra won a five-year outsourcing deal with the country's new telecom firm STel.

According to a report by the Economic Times of India, Tech Mahindra, along with Wipro, was shortlisted by STel to outsource its system integration-managed services. Under the contract, the IT outsourcers will also manage the maintenance of the operational support systems and business of the new telecom firm.

The report further said that a high-ranking executive from STel confirmed the deal although a spokesman from Tech Mahindra did not provide further comments.

STel expects to begin offering its GSM services in Q4 of the current fiscal year in some parts of the country in its aim to compete with India's leading telecom companies such as Reliance Communications and Bharti Airtel.

The new phone company was only granted license for six Indian states from the 22 circles it earlier applied for.

STel is privately controlled and is a consortium between the Siva group and Bahrain Telecommunications Company or Batelco. Balteco of Bahrain is a diversified telecoms operator offering mobile services, datacom, wireless and fixed broadband services and fixed-line services. Siva Group has businesses in shipping, wind energy, hospitality and logistics.

Tech Mahindra recently won an outsourcing contract from Etisalat Telecom, which is a consortium between Etisalat of UAE and the Dynamix Balwas group. Under the contract, the IT outsourcing firm will support the IT applications and infrastructure of Etisalat. In August, it also bagged an outsourcing contract from new telecom firm Swan Telecom.