As part of the multi-million euro deal, about 25 employees of Ahlstrom-Munksj are expected to be transferred to Tech Mahindra as per the agreement, a statement said.
The new agreement builds on an existing contract that was awarded to Tech Mahindra by Ahlstrom three years ago, it added.
No financial details of the deal were disclosed.
Earlier this year, Ahlstrom and Munksj had announced their merger, creating a major fiber-based solutions entity.
Under the new deal that has been announced today, Tech Mahindra will provide end-to-end IT services and solutions including IT user support, infrastructure management and application support.
Tech Mahindra has significant presence in Europe, which accounts for around 30 per cent of the company's overall business.
Ahlstrom-Munksj's annual net sales are about 2.15 billion euros and has about 6,000 employees.
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