Accenture, EDS lead race for RCom's $500mn deal

Global IT majors Accenture and Electronics Data Systems (EDS) have emerged as the frontrunners for Reliance Communications' $500 million information technology (IT) outsourcing contract. US-based IBM, Hewlett-Packard and T-Systems, a subsidiary of German telecom major Deutsche Telekom, are also in the fray to bag the 10-year contract.

"A high-level committee of Reliance Communications has short-listed Accenture and EDS. The winner is expected to be announced by the end of this month," sources close to the development said.

A Reliance Communications spokesperson declined to comment on the status of the contract. He, however, stated: "We are continuously evaluating various opportunities to enhance value for our many million stakeholders." He also indicated that a decision was expected in the coming few weeks.

Reliance Communications had announced plans to outsource its IT requirements to an international IT major to lighten its assets and channel the funds for network expansion. The company had begun discussions with global companies in April this year. Texas-based EDS, market leader in the US and Europe, has been providing IT services and support for the last 40 years, while Accenture is a technology services and outsourcing company with presence in 48 countries.

This is the second largest IT outsourcing contract from an Indian telecom company, the earlier one being the $800-million outsourcing contract won by IBM from GSM major Idea Cellular.

The contract will enable the Anil Ambani group company to be cushioned from becoming obsolete in any future hardware and software technology. The company also does not expect any further investments in IT, even though it would go ahead with expansion plans across wireless, broadband and global businesses. Outsourcing would also result in savings of over 30 per cent over the next 10 years.