Mid-sized information technology vendor Mastek Limited is selling out its joint venture with Deloitte Consulting. Mastek had established a 50:50 IT services JV with UK’s Deloitte Consulting in 2001 to offer services like application development, systems implementation and integration and other outsourcing services.
As Deloitte shifted its focus to consulting from IT services, revenues stagnated around the Rs. 100 crore-level for the past three years. Margins, at around 4%, are also significantly lower than Mastek’s own. The company has refused to disclose the valuation of the JV. The viability of the JV was also a question since Deloitte has set up its own centre in the country.
In the last quarter, Mastek had bought out its business process outsourcing JV partner Carreker in their loss making non-voice BPO JV. Last year, Mastek sold its stake in another BPO venture in favour of partner Capita to remain a minority financial investor.
Read more on Mastek in the DNA Money article.
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