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Tech Mahindra has bagged an outsourcing deal to manage the information technology operations for Finnish fibre materials company Ahlstrom.
About 50 of Ahlstrom’s IT employees globally will move to Tech Mahindra under a business transfer agreement, according to a press statement.
The country’s fifth largest IT services vendor qualified the deal as a ‘multi-million euro’ engagement, without getting into the specifics.
However, Rajesh Chandiramani, Head of Enterprise Business - Continental Europe at Tech Mahindra, said that this engagement fits into Tech Mahindra’s description of a ‘large deal’. The company qualifies contracts with a revenue potential of above $50 million over a three-year period as a large deal, Chandiramani told BusinessLine in a telephonic conversation.
The two companies signed a letter of agreement at a ceremony in Helsinki today.
In the statement, Kristiina Lammila, Vice-President, Information Solutions, Ahlstrom, said: “The arrangement will allow us to build more harmonised IT portfolio with a lower cost. In addition, it provides interesting career and professional development opportunities for the people being retained at Ahlstrom and for those being transferred to our alliance.”
Tech Mahindra, which renders services to top European companies such as KPN BASE, Volvo and UBS, generates about 31 per cent of revenue from the continent.
Shares of Tech Mahindra ended 0.11 per cent lower to close at ₹2,468.35 on the Bombay Stock Exchange today.
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