Dropping British Telecom (BT) from its name but ending speculation on whether the move was a precursor to BT's exit from the joint venture, Mahindra British Telecom (MBT) officially announced it was changing its name to Tech Mahindra but said BT was not reducing its stake in the company or reducing its commitment as a customer. The Mumbai-based software firm also unveiled a new logo at Nasscom 2006 on Friday.

The name change is widely believed to be a sign that BT will eventually exit the joint venture or reduce its stake holding. However, MBT's chairman Anand Mahindra and vice-chairman Vineet Nayyar, said the name change was a reflection of its diversified client base, especially after its recent acquisition of Axes Technologies.

BT Group, Group Strategy Director, Clive Ansell, said the UK-telcommunications firm had no immediate plans to set up captive facilities in India for IT or ITeS.

Outsourcing contracts from BT account for nearly 2% of the country's IT sand ITeS exports, BT India chairman, Arun Seth, who is also on the board of MBT said.