BT takes axe to Indian IT deals

Michael Carroll
31 Aug 2010
00:00
News
Daily News

BT will slash its IT outsourcing to tier one Indian firms 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 by 15% 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 business for Indian firms, which have taken up to 70% of the £1.2 billion ($1.85b) the telco spends on outsourcing each year, the Hindu Business Line said.

Firms such as former subsidiary Tech Mahindra – in which BT still owns 31% - HCL, Tata Consultancy Services and Infosys are all on BT’s books, the news site reported.

BT had 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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