Tech Mahindra has announced a very large multi-year deal with AT&T. The size of the deal is not disclosed but is estimated to be one of the largest deals in the tech company's recent history. Manoj Bhat, CFO of Tech Mahindra, shared the details.
“This is a multi-year deal, about 6-6.5 year deal where we will help AT&T in their transformation journey using multiple digital technologies as well as it is also around both network-facing as well as the IT side of thing. So in a lot of ways, it is clearly something which we are very happy to partner with AT&T on this journey,” Bhat told CNBC-TV18 on Friday.
“As far as the deal size goes, we are not disclosing that but it is one of the largest deals in our history and it is a significant uptick in our relationship with AT&T. This will come into our revenue streams going forward starting from Q3-Q4 and well into next year,” he added.
“We are seeing deal conversions happen. We are looking at multiple deals across areas and this could be across multiple geographies also – the common theme seems to be that we are seeing scaling up of digital as number one. Number two, we are seeing more stability from customers in terms of viewpoint over five years and longer and that is why some of these deals are back in play. The third is, if I look at deal cycles, most of the clients are reaching decision-making quicker than they were in the past which is a good thing. It is true for the industry that the deal-wins are up and that is an indication that while there are enough doubts around what is going to happen to the global economy, from a customer perspective we are seeing a lot more willingness to decide and move on,” Bhat said.
In terms of growth from the communication vertical on AT&T deal, he mentioned, “From an overall vertical perspective, we are seeing investments in new technology areas. We are also seeing digital as a core spending area which has been increasing consistently. On this particular deal, there will be a bit of preparatory work on 5G as AT&T looks to get into the 5G network area, we will see the transformation happening even on the IT side and we will be helping them with that.”