Rajesh Chandiramani, general manager-marketing, Tech Mahindra, said, With revenue coming from our other major locations, we wanted to make the right investments. The firm generates about 65% of its revenue from British Telecom, which is the largest communications service provider in the UK and Europe. It's a very strategic step for us to go to Israel because that country has more than 100% mobile penetration, said Chandiramani. Israel has a population of about 7.3 million people and 7.7 million mobile phone users. Moreover, its an innovation destination and a land of entrepreneurs. So we couldnt ignore it and have recently tied up with Hutchison for a core project in the BSS (business support system) and OSS (operations system solutions) domain, he added.
The firm has tied up with five IT companies in Israel that would act as system integrators for its operations there. This would help us set up a right delivery base, considering the cultural and language constraints in Israel, said Vikram Nair, vice-president & managing director, Tech Mahindra-Europe. We are in talks with other telecom players as well like Bezeq Telecom and would also like to do business with some interesting gaming companies. We are expecting a revenue of about $5-10 million in the next 1-2 years and about $10-15 million in 3-5 years from our Israel operations, he added.
Incidentally, experts reckon that spending on software and IT services by telecom service providers is expected to touch $38.36 billion in 2009, from $35.08 billion in 2007, making it one of the most sought-after sectors in the software business.