VSNL, TCS in talks to bag Cable & Wireless contract

Two Tata group companies — Videsh Sanchar Nigam (VSNL) and Tata Consultancy Services (TCS) — are in talks with Cable & Wireless for jointly providing IT and business solutions to the global telecom giant. According to sources, if talks between the two Tata group companies and Cable & Wireless are successful, the latter is likely to outsource a considerable chunk of its IT, software and networking requirements to the Indian companies.

This could involve the two Tata group companies jointly providing services such as system integration, system management, network management and other value added services like security and firewalls for Cable & Wireless, sources said. “While VSNL is a global networking major, the tie-up with TCS provides clients with a converged network IT solutions platform. Besides, under this business model, there are not many external dependencies,” explained a source.

If successful, this is likely to rank among the major IT deals bagged by Indian companies as Cable & Wireless provides telecom related services in 34 countries. Cable & Wireless operates through two standalone business units — International and UK.

The International business unit operates integrated telecommunications companies in 33 countries offering mobile, broadband, domestic and international fixed line services to residential and business customers, with principal operations in Caribbean, Panama, Macau, Monaco and Channel Islands.

When contacted, a TCS spokesperson said, “TCS is in discussions with Cable & Wireless on a range of business issues, just as we are with a large number of global corporations. The talks with Cable and Wireless are at a preliminary stage and it would be premature to make any further comment on this issue.”

VSNL sources said that this was also part of the company’s strategy to “re-engineer” its business model, where it planned to move away from being just a pure-play long distance service provider to an information and communication technology (ICT) services provider. Besides, VSNL individually is working towards expanding its managed services portfolio to include disaster recovery and business continuity processes, managed e-mail and IT security.

These services require IT implementation, virus protection software and other IT support which will be provided by TCS. Cable and Wireless will also be able to access these services if the two Tata companies clinch the deal, sources added.