Though financial details of the deal were not disclosed, sources said the deal size is worth over GBP 350 million.

When contacted, Network Rail in an emailed response said, "This is no commitment, zero-sum framework agreement. There is potential for a certain level of money to change hands, but equally, the companies concerned know they may not get that work."

"We have a mixture of outsourced and in-house IT suppliers. The previous systems integration framework, which this replaces, had 16 suppliers. What this (deal) does is share the delivery risk more equally between Network Rail and our suppliers," it added.

The deal assumes significance as demand for IT services in the European region is almost flat amid economic uncertainties. The region accounts for about 20-30 per cent of the revenues of the Indian IT sector.

"By creating this framework, we will be able to scale more flexibly our resources to meet demand, while retaining our vital assurance role," Network Rail Chief Information Officer Susan Cooklin said.

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