Datacom, Sistema to offer $300 mn IT deals
Posted by telcobizpedia on May 29, 2009
29 May 2009, 0008 hrs IST, Jessica Mehroin Irani & Ranjit Shinde, ET Bureau
MUMBAI: Datacom and Sistema Shyam TeleServices, two new entrants in the telecom space, have shortlisted Wipro, Tech Mahindra and IBM for an IT outsourcing contract of close to $150 million each. This is a boon for the IT service providers at a time when the slowdown has resulted in a drop in the number of books.
Videocon-promoted Datacom has received licences in all the 22 telecom circles in India and is in the process of launching its operations. “Yes, the three (IT vendors) have been shortlisted and are competing for the contract. The deal value has not been finalised,” said VN Dhoot, chairman of Videocon group.
Sistema Shyam TeleServices, a joint venture between Russia’s telecom giant Sistema and India’s Shyam group, is in the process of launching CDMA operations in 18 circles. Though the company did not confirm the names of IT firms, a source in the know said that it has invited bids from the three IT vendors mentioned earlier for IT infrastructure-related services in these circles. Sistema Shyam has recently launched operations in Kolkata taking its total number of active circles to four.
While IBM and Tech Mahindra declined to comment on the development, Wipro officials were unavailable for comment. On the exact structure of the contracts, it was not possible to ascertain that from Datacom. However, Sistema Shyam in an e-mail response, said that it would be a fixed value, short-term contract wherein the IT assets would not be obtained on a lease, but would be acquired by the telco. The scope of work broadly includes data centre construction, applications management services and infrastructure hardware supply and support.
Sistema-Shyam has already outsourced its IT requirements for its existing four circles. “Key vendors, who are working on our various IT projects, are Sitronics, Tech Mahindra, IBM, HP, Wipro and Oracle. Since our IT is based on a centralised model, the projects are uniform for all circles and are not taken separately,” CEO Vsevolod Rozanov told ET.
The new domestic telecom operators have kept the order book running for IT companies that have been hit by the slowdown. Earlier, Wipro had bagged a large full IT outsourcing project from Unitech Wireless worth approximately Rs 2,500 crore over a nine-year period. Most of the new service providers are expected to launch their services in the next 12 months. “We expect operators, such as Unitech, Swan and Datacom to commence by July 2010 given the regulatory pressures,” said India Infoline’s telecom analyst Bhavesh Gandhi.