German telecom operator Telefónica Deutschland has selected Pune-based information technology services firm Tech Mahindra to run its network and services operations, the companies said in a statement.
Tech Mahindra will also work with the Munich-based telco to operate its 5G network, apart from developing artificial intelligence and machine learning use cases for their customers.
The IT major focuses and generates 40% of its revenues from the telecom vertical, a sector that has seen a growth in consumption due to remote working globally since March. Most other top tier IT firms usually generate less than 10% of their revenues from the telecom vertical.
Telefónica Deutschland is one of the largest telcos in Germany and offers digital products and services in the fields of the internet of things and data analytics for enterprise customers. The company has more than 42.4 million mobile phone connections under its O2 brand. In 2019, the company reported 7.4 billion euros in revenue and has more than 8,500 employees.
"We are supported by a globally experienced service provider to consistently drive forward the development of our network and services operations, thus leading to further enhancement of 5G, artificial intelligence and data analysis use cases," said Mallik Rao, CTO and CIO of Telefónica Deutschland.
Tech Mahindra has a long-standing partnership with the German telco and said that it will work to enable the digital transformation of Telefónica Deutschland.
"We support Telefónica Deutschland's vision of becoming the 'mobile customer and digital champion' by 2022. We are committed to 5G, the network of the future, and focuses on technology-driven innovation for digital transformation," said Vikram Nair, president for Europe, Middle East and Africa (EMEA region) at Tech Mahindra.
Tech Mahindra reported a better than expected revenue and net profit for the first quarter of the financial year 2020-21 amidst the pandemic when it recorded a 32% sequential growth in consolidated net profits at Rs 726 crore. Its income stood at Rs 9,106 crore for the June quarter of FY21, a 5.2% growth from the Rs 8,653 crore it reported for the same period last year.
Early this month, Tech Mahindra rolled out a smart planning feature on its new age delivery or NAD platform that will help businesses to improve business agility of its customers.
Last month, the company announced a global strategic partnership with CyQureX, a London based cybersecurity solutions provider, to leverage the latter's core software defined perimeter technology and solutions to help clients address the ‘zero trust’ environment.