The report also indicated that it may cut its global IT budget for FY11 by 50%, from US$1bn to US$500mn. BT may re-negotiate deals with existing vendors, the report added.
Shares of Tech Mahindra fell by close to 4% today on BSE after a business channel suggested that UK-based telecom giant BT is reportedly restructuring its global services unit and is likely to cut rates by 9-10%.
The stock has recovered some of the lost ground and was last seen down 2% at Rs681 after touching a low of Rs668 and a high of Rs700. Trading volume on the counter is very low at around 28,000 shares.
The report also indicated that it may cut its global IT budget for FY11 by 50%, from US$1bn to US$500mn. BT may re-negotiate deals with existing vendors, the report added.
India’s Infosys and Tech Mahindra do IT outsourcing work with BT.
Tech Mahindra is a joint venture between Mahindra & Mahindra and BT Group Plc.
Source:http://www.indiainfoline.com/Markets/News/Tech-Mahindra-dips-as-BT-mulls-IT-recast/4915903916
