Oct. 6, 2009 (The Hindu Business Line) --
BL Research Bureau Tech Mahindra (OOTC:TMHAF) ’s continuing streak of large deal wins increases revenue visibility for the company, apart from reducing client concentration.
The company has reportedly won an IT outsourcing deal worth $50 million from Saudi Telecom, a leading telecom operator in West Asia that also has operations in a few South Asian nations.
The deal size is about 4-5 per cent of Tech Mahindra’s 2008-09 revenues.
Earlier, the company had won a $400-million deal, spread over 10 years, from Etisalat DB.
Etisalat DB has telecom licences to operate in 15 circles in India but is yet to commence operations. Etisalat is a large telecom operator in West Asia and is an existing client of Tech Mahindra. This suggests increasing presence of the company in the region.
The present deal also eases the dependence on its largest client – BT Global Services. (NYSE:BT) BT as of June 2009 contributes 52 per cent of Tech Mahindra’s revenues, which is steadily coming down over the past several quarters, thanks to large deal wins from other clients.
