As part of the deal, about 50 Ahlstrom IT employees globally are planned to move to Tech Mahindra under a business transfer agreement.

The multi-year, multi-million euro agreement will help Ahlstrom increase efficiency, harmonize service levels and lower IT costs, Tech Mahindra said in a statement.

The planned transfer of employees is expected to take place on 1st December, 2014, subject to country specific conditions, it added.

"The arrangement will allow us to build more harmonized IT portfolio with a lower cost. In addition, it provides interesting career and professional development opportunities for the people being retained at Ahlstrom and for those being transferred to our alliance," Kristiina Lammila, Vice President, Information Solutions, Ahlstrom said.

Tech Mahindra generates 31 percent of its revenues from Europe. It has a presence in 20 countries and employees over 2,900 professionals.

"Finland is a very important and strategic market for us. This agreement will help us provide a wide array of future opportunities for the Ahlstrom IT professionals globally while helping us with enabling our innovative service offerings for the customers in the region," Rajesh Chandiramani, Head of Enterprise Business - Continental Europe, Tech Mahindra said.

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