Tech Mahindra wins new contracts from Three UK

Bengaluru: As a sign of vendor consolidation in the IT industry, Tech Mahindra has increased its engagement level with UK-based telecom major 'Three UK' by winning more outsourcing contracts.

Sources in the know said 'Three UK' has decided to shift some of the contact call centre operations managed by BPM (business process management) service provider Capita to Tech Mahindra, which is already managing the majority of call centre operations for the UK telecom major. Mails sent to Tech Mahindra remained unanswered at the time of going to press.

"It's a sign that vendor consolidation is happening across all service lines in the IT industry and Indian IT majors are gaining market share as compared to their global counterparts," said Pareekh Jain, an IT outsourcing advisor and founder of Pareekh Consulting. "Given the difficult business environment, even clients are terminating contracts prematurely and shifting business to existing vendors," Jain added. According to sources, 'Three UK' has entered into an agreement with Capita in 2016 for managing its call centre operations involving sales and customer support. Though the contract has 7-year long, it was terminated prematurely by 'Three UK' with the business shifting to Tech Mahindra.

With this deal, while most of the work will move to Tech Mahindra, which already manages the majority of our contact call centre, the rest will be managed by 'Three UK'.

In the recently concluded analyst meets, the top management of Tech Mahindra has shown optimism on the company's future growth.