iGate wins $80 mn outsourcing contract from French telco Orange

Bangalore: Nasdaq-listed software services firm iGate Corp has won a five-year outsourcing contract worth $80 million from France’s biggest telecom firm Orange SA to manage its back-office information technology (IT) infrastructure in Switzerland, at a time when the phone company attempts to reduce costs amid a slump in revenues.

The latest contract marks the second major order win for iGate since chief executive Ashok Vemuri took over the reins of the Fremont, California-based company. Last month, iGate won a contract from Swiss financial services firm UBS AG.

As part of the latest deal with Orange, iGate will manage all back-office processes, including enterprise resource planning (ERP) software implementation, telephone and data networks and IT infrastructure.

Over the past few years, Orange’s chief executive Stephane Richard has been curbing expenses and attempting to fend off other telecom rivals in Europe by offering premium packages to customers that include high-speed mobile Internet connections. The outsourcing deal with iGate comes as part of the company’s push to shave further costs.

Last week, iGate’s sacked former chief executive Phaneesh Murthy filed a lawsuit against the company, alleging wrongful termination and defamation, after the company fired him for failing to disclose a relationship with a subordinate. iGate has said that the lawsuit has no merits and it intends to fight the case.