Comverse and Tech Mahindra announced today they have reached an agreement in principle on a strategic relationship, whereby Comverse will accelerate its transformation as a global innovator in digital services by leveraging Tech Mahindra's expertise and scale in development and delivery of digital offerings. 

As part of this initiative, employees from certain functions within Comverse's Digital Services business unit are anticipated to join Tech Mahindra. Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering, particularly in the global technology industry. 

Tech Mahindra will complement Comverse's R&D and engineering operations through innovation in product development techniques and just-in-time capability reinforcement. Tech Mahindra will bring its experience in developing and creating a start-up ecosystem that has helped launch path-breaking solutions for the connected world. The company will also enable global exposure and long-term career opportunities for the employees coming onboard from Comverse.

This relationship gives Comverse access to a flexible operating model to respond more quickly to changes in market demands and brings an influx of skills to expand Comverse’s delivery of innovative products for its customers.

''The onboarding of Comverse’s expertise will help Tech Mahindra significantly, as we are one of the comprehensive integrators of technology services to communications service providers. This move will help us augment our investments in startup ecosystems, research and development, and network services. I take this opportunity to welcome members of the Comverse workforce into the USD 16.5 billion Mahindra Group,'' said CP Gurnani, MD & CEO, Tech Mahindra.

Shares of the company declined Rs 5.75, or 0.86%, to settle at Rs 659. The total volume of shares traded was 106,691 at the BSE (Wednesday).