IBM signs $200M outsourcing deal with Indian telecommunications company

By AP
Tuesday, October 6, 2009

IBM signs $200M outsourcing contract with telecom

SAN FRANCISCO — IBM Corp. says it has won a $200 million contract to handle some technology chores for a company called Datacom Solutions as it rolls out telecommunications services in India.

The three-year outsourcing deal, set to be announced Wednesday, will give Datacom access to IBM technology that helps manage cell phone and Internet networks and make sure the services are working properly.

V.N. Dhoot, chairman of the Indian firm Videocon Group, the parent company of Datacom Solutions, said in a statement the company picked IBM because of its “unmatched track record of building leadership in telecom in markets not only in India but worldwide.”

Armonk, N.Y.-based IBM, which makes most of its money from services and software, signs billions of dollars in services deals every month. In the April-June quarter, the company signed $14 billion in services contracts, 17 of which were $100 million or bigger.

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