Telstra, Australia's leading telecom and information services company, will move about 130 jobs to Satyam Computer Services in Bangalore as part of its move to cut the $1.5 billion information technology budget in half, according to media reports in Sydney.

But the partially state-owned company, which is already facing criticism over planned outsourcing of some 450 jobs to India, was tight-lipped about the move.

Outsourcing and India: Complete Coverage

National daily The Australian reported on Friday that, "India's Satyam Computer Services has a dedicated unit within the company, carrying Telstra branding, which will employ 120 to 130 employees."

Coming close on the heels of media reports that 450 Australia-based jobs are likely to shift to India under an agreement between Telstra and IBM, the daily said the job losses to Australia could total 800.

According to sources in Sydney, Satyam is also expanding its infrastructure in Australia to serve local business requirements from its clients.

A spokesperson of the Indian IT major said, "Satyam has been working with Telstra for the past two years on several engagements. As part of this, we have signed a few deals in the recent past. Due to reasons of confidentiality, we are unable to provide further details at this juncture."

The newspaper said, "It is understood that the new center was opened by Telstra Technology, Products and Innovation chief Ted Pretty and chief information officer Jeff Smith on a visit to India last week. Satyam's Indian competitor Infosys, also visited by the Telstra executives, will employee 180 staff, mainly in India, carrying out Telstra IT work."

"Telstra has now finalised a multi-services agreement made in 2003 with Satyam to work on Telstra's data warehousing previously performed by Deloitte Consulting," the daily added.

A Telstra spokesman was quoted in the paper as saying, "It's on public record that we have a relationship with Satyam and that they are one of a number of companies that provide us with IT services.

"How they do so is a matter for them. The work awarded to Satyam focuses on data warehousing, technology that will allow Telstra to store vast quantities of information."

The paper quoted Satyam's senior vice-president Vijay Prasad as saying that the centre would be dedicated to Telstra work and the staff will be drilled in the Australian telecommunications company's work practices.

"This is a multi-services (agreement), so it could be development work, production work and maintenance. We are freeing up Telstra management so they can focus on other initiatives. Once the system is developed, it can be supplied from India. Every desk will have the core values (of Telstra) on it," Prasad was quoted as saying.