BENGALURU: Tech Mahindra has bagged an over $1 billion deal from AT&T Communications, its largest ever. It's bigger than that with British Telecom, with which it has had a long relationship.

The BT deal at one point was about $1 billion, but is now lower. So this marks Tech Mahindra's re-entry into the billion dollar league. TCS , Infosys and Wipro have won some billion dollar plus deals.

The AT&T contract involves rebadging 300-350 employees, sources told TOI.

AT&T recently also signed a contract with IBM under which the latter will modernise its internal software applications and migrate them to the IBM Cloud. In July, it signed a deal with Microsoft for its non-network applications.

Tech Mahindra said there's an expansion of its strategic collaboration with AT&T to accelerate the latter’s IT network application, shared systems modernisation and movement to the cloud. “Tech Mahindra will assume management of many of the applications which support AT&T’s network and shared systems,” it said in a statement.

Tech Mahindra declined to comment on the value of the contract. However, its spokesperson said the company is supporting AT&T in its transformation journey. AT&T contributes nearly 10% to the company's revenue.

Jon Summers, CIO, AT&T Communications, said, “Our agreement with Tech Mahindra is another step forward in delivering greater flexibility across our IT operations. This includes optimising our core operations and modernising our internal network applications to accelerate innovation as we march forward to our goal of a nationwide 5G network by the first half of 2020. Our collaboration with Tech Mahindra will ultimately help accelerate our network operations and overall technology leadership.”

AT&T and Tech Mahindra will integrate several world class technologies and platforms in areas like artificial intelligence, DevOps, data analytics and 5G.

CP Gurnani, MD & CEO, Tech Mahindra, said, “This is a step towards elevating Tech Mahindra’s long standing strategic relationship with AT&T to help make the vision of a 5G-enabled future, a reality," he said, adding that Tech Mahindra is betting big on 5G.

