Shares of Tech Mahindra gained 5 percent in the early trade after the company said it is expanding its collaboration with telecommunication giant AT&T.
The company in its release said that it has expand its strategic collaboration with AT&T to accelerate AT&T’s IT network application, shared systems modernization and movement to the cloud.
Tech Mahindra will assume management of many of the applications which support AT&T’s network and shared systems.
CP Gumani, MD & CEO, Tech Mahindra, said, “This is a step towards elevating Tech Mahindra’s long standing strategic relationship with AT&T to help make the vision of a 5G-enabled future, a reality."
The multi-year agreement will enable AT&T to focus on core objectives, including having the most advanced software defined 56 network, and migrate the majority of its non-network workloads to the public cloud by 2024.
Manoj Bhat, CFO of Tech Mahindra in an interview with CNBC-TV18 said that the deal is for 6-6.5 year. The company would help AT&T in their transformation journey using multiple digital technologies.
As far as the deal size goes, we are not disclosing that but it is one of the largest deals in our history and it is a significant uptick in our relationship with AT&T, he added.
On this particular deal, there will be a bit of preparatory work on 5G as AT&T looks to get into the 5G network area, we will see the transformation happening even on the IT side and we will be helping them with that, he further said.
At 0924 hrs, Tech Mahindra was quoting at Rs 726.40, up Rs 31.05, or 4.47 percent on the BSE.
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