About 70 per cent of these sub-contracted activities will be carried out by the two Indian firms, ArcelorMittal said today. The overall deal size for the partnership is around $50 million (Rs 200 crore).
Mindtree, which has bagged a majority share of the contract, will work in partnership with European Sopra Group, an incumbent provider to ArcelorMittal. It will consolidate current sub-contracted activities with the objective to increase cost efficiency, flexibility and service levels.
Close to 350 people will be deployed by the two Indian companies for these operations. The framework agreements are valid till 2011-end.
ArcelorMittal said in a statement that there would be no direct job cuts in the steel behemoth as a result of the initiative. It explained that the initiative would allow its IT employees to focus on high-value addition activities.
