Etisalat terminates Tech Mahindra outsourcing deal

network, Money Control reveals.

"We await official communication from them on the decision about cessation of operations. We will have discussion with them subsequently," Tech Mahindra said in a statement on Thursday. It did not elaborate.

Etisalat's India mobile telecoms unit was in a pact to outsource its information technology applications to India's Tech Mahindra in a deal valued at $400 million spread over 10 years, Global Services notes.

The outsourcing deal included implementation of its end-to-end IT applications and infrastructure, system integration and managed services. Sources say Tech Mahindra is likely to invoke bank guarantee in the Etisalat deal. The bank guarantee is for up to Rs 500 crore.

The news comes on the back of Etisalat's announcement that it would shut down the operations of its Indian joint venture, three weeks after the Supreme Court cancelled the affiliate's licence amid a corruption probe.