Business Process Outsourcing News and Information

After being serviced by a multitude of vendors in the past, steelmaker ArcelorMittal has now decided to zero in on couple of service providers to consolidate sub-contractors' activities. Not surprisingly, it has chosen two Indian software companies– Satyam Computer Services and MindTree Ltd for the purpose. It is believed that more than 70% of the sub contracted activities will be carried out by these two firms. The value of the partnership is estimated to be $50 million. The framework agreement runs till 2011.
 
Mindtree, as compared to Satyam will bag the majority share and will work in conjunction with European Sopra Group. Approximately 350 people will be deployed by the Indian companies to run the project.

Domain-b writes the current move plans to drive down the overhead of managing multiple local vendors and derive cost benefits and enhanced application support from a smaller list of vendors. Subsequently, it will look at creating a common platform or set of applications that can be replicated across multiple sites and deployed to enhance consistency and reduce application maintenance costs.


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