In what can be a huge boost to IT players, outsourcing deals worth a whopping USD 900 million may be up for renewal before may 2015.
In what can be a huge boost to IT players, outsourcing deals worth a whopping USD 900 million may be up for renewal before may 2015. Here’s a low down on who are the interested bidders. Kritika Saxena reports…
Who’s who of Indian IT like Tata Consultancy Services ( TCS ), Wipro , HCL Tech , Cognizant, Tech Mahindra and MindTree amongst the names of the IT players that are bidding for this. By mid April it should be closed. So by May mid we could see some kind of action or some kind of announcements. There is one deal from ArcelorMittal that is for USD 450 million for IT, infrastructure. Then there is Australian Westpac Bank which is likely to renew a USD 250 million deal. This is largely for application development services.
There is another application development services deal by Johnson & Johnson and that is about USD 100 million. Besides, there is a Citi Bank analytic deal that is also likely up for renewal that has not been confirmed yet that is about USD 100 million to handle the analytics across Europe.
Now in terms of the kind of benefits that are likely to come in this will only be post the June quarter. So we could actually see some kind of action coming in or some kind of benefit coming in to the balance sheet only post that. My sources say that most of these deals are likely to be given to large players so Mindtree or Mphasis may not benefit as much as TCS and HCL Tech. Of course none of the players gave us official comments for that.