KPN eyes 200 mn euros in savings on Tech Mahindra deal

Dutch telecoms operator KPN said Wednesday it has signed a partnership deal with Indian IT group Tech Mahindra which it hopes would save it 200 million euros ($250 million) over five years. In a statement, KPN said it hopes to improve its IT efficiency and effectiveness and to strengthen its business models through the deal. In April 2011, KPN announced it would cut 4,000-5,000 Netherlands-based jobs by 2015, representing about 20-25 percent of its workforce there. It also said it would reduce headquarter costs by 30 to 40 percent by 2013. KPN said it has signed a five-year contract with Tech Mahindra for the development and support of over 150 applications in KPN's IT systems. Tech Mahindra specialises in network technology and IT outsourcing.