S Tel has asked the Department of Telecommunications (DoT) to intervene and resolve the issue of its IT vendor, Tech Mahindra, discontinuing services without any prior intimation.
It is believed that the operator has threatened to take legal action against the vendor and plans to seek compensation as well.
Further, in a written correspondence to R. Chandrasekhar, secretary, DoT, S Tel said that this incident took place while it was discussing the payment schedule outlook with Tech Mahindra. It added that on August 29, 2011, Tech Mahindra had unilaterally discontinued their call centre and managed services.
S Tel has been holding discussions with all its vendors, seeking two years moratorium on payments against standing invoices in view of a fund crunch.
However, its vendors have resorted to disconnection of network equipment over non-payment of dues.
S Tel had awarded a long-term IT outsourcing contract to Tech Mahindra in 2009. The contract also involved maintenance of the company?s business and operational support systems.
