Indian telecoms company Tech Mahindra has acquired a minority stake in London-based IT services company Servista,...
just a day after the Financial Times reported BT was considering selling its stake in the Indian firm.
Tech Mahindra will help Servista secure more European IT offshoring business and will work as the company's exclusive delivery arm for the next three years. It will have the right to nominate a member to Servista's board of directors.
Servista CEO Ben Andradi said the deal would help Servista "deliver the huge benefits of Indian offshoring to the European marketplace".
He added, "There is substantial potential for growth. European companies are at relatively early stages in their use of IT offshoring for competitive advantage.
"The European domestic market needs more people with specialist skills."
Tech Mahindra's stake in Servista will be seen as another example of Indian IT companies increasing their global footprint following the takeover of UK-based consultancy Axon by Indian outsourcing company Infosys.
However, there has been a trend of multinational companies selling out of their joint-venture outsourcing units in India. Global technology provider Nortel Networks is to sell its £5m stake in Indian communications company Sasken, according to reports in the Financial Chronicle.
BT is considering selling its 31% stake in Tech Mahindra, worth £1.2bn, because the joint venture does not fit with its long-term strategy, according to FT reports.