Infosys Technologies has won an outsourcing contract worth $80-100 million from the Australian phone firm, Telstra.
Telstra had undertaken a vendor consolidation exercise to reduce its IT service providers from four - EDS, IBM, Infosys and Satyam - to two. The consolidation was aimed at bringing down the cost of managing its IT systems.
According to sources, vendor consolidation at Telstra is not over yet. Infosys and EDS appear to be the companies more likely to gain in this exercise.
It should be noted that Infosys refused to comment on the Telstra deal as it is in a silent period before the announcement of its quarterly earnings. Infosys remains our TOP PICK in the IT sector.