Tech Mahindra has acquired a deal of one billion dollars with the US telecom service provider, AT&T after the company looks to modernize its IT system and make a shift to cloud services. TechM has previously signed a five-year contract with BT, British telecom in 2013 that was estimated to be more than $1 billion.

Talking about the deal, the chief financial officer (CFO) of Tech Mahindra, Manoj Bhat said, “It is among the biggest in the last 5-6 years, and comparable to the biggest deals in our history.”

The deal is set to have an impact on the company’s margins for the next two quarters and it will also take the ownership of many applications that supports AT&T’s network. TechM is already doing business with AT&T and the deal is an addition to the same.

Through this deal, Tech Mahindra and AT&T are aiming to integrate world-class technologies to support the networks of the future and improve returns on investment.

At&T and BT are among the top five customers of the company and it earns over 21% of its annual revenue of $5 billion from these companies. 40% of the revenue of the company comes from the telecommunications vertical. Through this deal, Tech Mahindra and AT&T are aiming to integrate world-class technologies to support the networks of the future and improve returns on investment.

The CIO of AT&T communications, Jon Summers said, “Our agreement with Tech Mahindra is another step forward in delivering greater flexibility across our IT operations. This includes optimizing our core operations and modernising our internal network applications to accelerate innovation as we march forward to our goal of a nationwide 5G network by the first half of 2020.”