Indian technology giants Tech Mahindra and Wipro are reported to bid for a huge information technology outsourcing contract at Telecom, competing with IBM and Hewlett-Packard, uncovered a report issued from Mumbai.

Telecom extended a confirmation this month that it had selected three companies to acquire a $1.5 billion contract it awarded to EDS in 1999.

India's Economic Times revealed Tech Mahindra and Wipro as bidders, however, didn’t identify which company was leading the bid, or if they have filed any competing proposals.

Sources posted that a bid spearheaded by Tech Mahindra – one of seven companies to have submitted proposals initially to Telecom – would come as expected.

The reports revealed that over 300 people were speculated to work on that project, in New Zealand and in India.

Amidst all this, Telecom has initiated with a debate on whether to segregate into two separate companies and sources augured that could hamper its ability to negotiate a contract this year.

Labor Communications spokeswoman Clare Curran has rumored that 2000 jobs could be sent offshore as a consequence of new outsourcing plan. However, Telecom has widely denied it.