Tech Mahindra today announced a new agreement with AT&T to accelerate its IT network application, shared systems modernization and movement to the cloud.

Tech Mahindra will assume management of many of the applications which support AT&T’s network and shared systems.

Tech Mahindra generated 42 percent of its revenue from communication segment during the June quarter of 2019. But Tech Mahindra’s revenue from communication business fell by 3 percent quarter-on-quarter.

AT&T, the second-largest U.S. wireless carrier by subscribers, aims to focus on core objectives, including the setting up of software defined 5G network, and the migration of the majority of its non-network workloads to the public cloud by 2024.

AT&T added 72,000 phone subscribers who pay a monthly bill in the second quarter. AT&T also lost 778,000 premium TV subscribers, a category that includes DirecTV satellite and U-verse television customers, much more than 544,000 losses in the first quarter.

AT&T’s operating revenue in the second quarter rose to $45 billion from $39 billion a year earlier.

Jon Summers, CIO of AT&T Communications, said, “Our agreement with Tech Mahindra is another step forward in delivering greater flexibility across our IT operations.”

AT&T and Tech Mahindra aim to improve the agility in rolling out and supporting networks of the future, while improving returns on investment. AT&T and Tech Mahindra will integrate several technologies and platforms in areas like artificial intelligence, DevOps, data analytics and 5G.

AT&T aims to optimize the IT application footprint by aggregating functionalities, while optimizing business processes, costs, efficiencies and overall quality.

“Our aim is to boost AT&T’s 5G time-to-market and simultaneously reduce their cost of ownership by automating aspects of their network lifecycle,” Manish Vyas, president, Communications, Media and Entertainment Business at Tech Mahindra, said.