Bangalore: Australia’s biggest phone company, Telstra Corp. has ended one of its information technology or IT outsourcing contracts with International Business Machines Corp. (IBM) and has given it to Infosys Technologies Ltd, ‘The Australian’ reported on Monday.
Tech shift: The Infosys campus in Bangalore. The decision to shift from IBM to Infosys could result in job losses at the US firm. Madhu Kapparath / Mint
Less than a week ago, the newspaper had reported Telstra’s decision to terminate its IT outsourcing contract with fraud-hit Satyam Computer Services Ltd.
“IBM Global Services’ multi-million dollar applications support contract with Telstra has been scrapped as a result of the telco reducing its outsourcing partners from four to two,” the daily reported. “The decision to shift from IBM to Infosys could result in hundreds of job losses locally and in Bangalore, where IBM operates outsourcing centres.”
‘The Australian’ said IBM staff were told the scrapping of the vendor’s software support would represent about 50% of its $1 billion, six-year deal with Telstra, signed in early 2006.
Mint could not independently verify the news. Telstra could not be contacted on Monday evening due to time zone differences.
V. Balakrishnan, chief financial officer of Infosys, India’s second largest software exporter, said: “We are in silent period, we cannot comment. We don’t speak on individual clients.”
The IBM India spokesperson could not be reached for comment.