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Tech Mah's IT deal with Etisalat called off: Sources
Shares of Tech Mahindra fell nearly 1.40% after CNBC-TV18 reported quoting sources that its IT deal with United Arab Emirates telecom operator Etisalat has been called off.
Shares of Tech Mahindra fell nearly 1.40% after CNBC-TV18 reported quoting sources that its IT deal with United Arab Emirates telecom operator Etisalat has been called off.
The news comes on the back of Etisalat's announcement that it would shut down the operations of its Indian joint venture , three weeks after the Supreme Court cancelled the affiliate's licence amid a corruption probe.
Etisalat's India mobile telecoms unit was in pact to outsource its information technology applications to India's Tech Mahindra in a deal valued at USD 400 million spread over 10 years.
The outsourcing deal included implementation of its end-to-end IT applications & infrastructure, system integration and managed services.
Sources say Tech Mahindra is likely to invoke bank guarantee in Etisalat deal. The bank guarantee is for up to Rs 500 crore.
In an official statement, Tech Mahindra said, "We have heard from the media about EDB's decision to withdraw operations from India. We await an official communication from them on the decision about cessation of operations. We will have discussion with them subsequently."
