The Hindu Business Line : TCS bags $140-m deal from BSNL

Mumbai, Aug.30 TCS has secured a $140-million (Rs 574-crore) nine-year contract from BSNL to put in place both networks and software for its systems and processes.

TCS has termed it a “transformational deal,” one that would strike at the “heart” of a company’s business model.

It would provide BSNL a next-generation telecom infrastructure that enables it to change its systems and processes to move to a convergent billing system.

The first two years of the engagement will see TCS set up data networks across BSNL’s network in the north and the west, and deploy software for customer relationship management, billing, mediation and directory enquiry.

TCS will then move BSNL’s existing systems to the new platform and run the set-up for the next seven years, said Mr N. Chandrasekaran, Head of Global Sales and Operations at TCS.

TCS will manage the overall engagement along with a team of independent hardware, software and application partners.

“The systems integration portion of revenues, which will come in the first two years of the deal, will provide TCS with the maximum chunk of revenues,” said Mr Chandrasekaran.

He added that the contract also ensures annuity revenues for the next seven years.

The deal will also enable TCS to significantly increase its share of revenues coming from India, he added.

Reacting to the development, the TCS scrip gained 0.92 per cent to close at Rs 1,041.25 on the BSE today.