Mumbai: Tech Mahindra, which last week inked a partnership with Dutch telecom major KPN Royal Dtuch Telecom to offer software services, on Tuesday said it is hopeful of sewing up more such model of service offering in future.

Last week, Tech Mahindra and the Netherlands government run KPN had signed a five-year deal to develop and support applications for the telecom firm, which will see TechM offering over 150 applications to the Dutch telco.

"We are happy that we have signed this unique business model with KPN, with which we have been doing business since 2008. This partnership model is a first by a domestic software company and I hope we will be able do more such deals in future," TechM Managing Director C P Gurnani told a select media meet which was jointly addressed by KPN representatives here on Tuesday.

Explaining the benefits of the partnership model over the vendor model, Gurnani said the company will be doing a host of activities with KPN as partners and not as vendors. That apart, it will also help KPN cut down on cost and time on managing vendors.

"We will be co-developing/co-innovating the services apart from marketing them and taking them to market together. In short, we will be an integral part of the services that KPN will be offering in their three markets--the Netherlands, Germany and Belgium--and not be mere vendors of some services," Gurnani added.

On why his company has decided to move away from the vendor model and the benefits of partnership model, KPN Royal Dtuch Telecom chief strategy, innovation and technology officer Erik Hoving said, "with this I can massively cut down on cost apart from saving lot of time, which I can divert to better customer service."

"Earlier I was dealing with over 20 vendors, with this deal with TechM, it will be just one or two. This will give me enormous time to offer to my customers," Hoving said.

On the cost benefit, Gurnani said the agreement will help KPN save up to 200 million euros over the next five years, as the Dutch firm will be able to massively cut down on the number of its vendors from over 20 to one or two.

The partnership involve co-developing and supporting of over 150 applications in the operational IT systems of KPN.

"We see natural synergies between our two organizations which we believe are critical to build a lasting partnership," Hoving said.

"KPN is a leading player in the Netherlands and is in the midst of its accelerated investment strategy which gives TechM significant opportunities to use its transformation solutions," Gurnani said.

(Agencies)

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