Infosys-Telstra deal may cause job losses
By siliconindia   |   Thursday, 26 March 2009, 01:17 IST   |    4 Comments
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Melbourne: Indian software biggie Infosys will get most of a multi-million support contract that earlier gave to IBM Global Services (IBMGS), from Australian software major Telstra, while the move may result in hundreds of job losses in Australia and in Bangalore, where IBM operates outsourcing services, reported The Australian. Telstra was deciding to scrap the six-year deal signed in 2006 with IBMGS following telco reducing its outsourcing partners from four to two. Almost 50 percent of one billion deal will now go to Infosys. According to the sources, the deal was lost not because of performance issues but because Infosys low-balled the IBM offer. Meanwhile, Telstra has been reviewing its IT outsourcing contracts with Satyam EDS, IBMGS and Infosys since last year, when the telco announced it would trim its list of major IT suppliers from four to two in an effort to reduce costs and streamline its providers.

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