Tech Mahindra is actively looking for acquisition both in the BPO as well as technology sector. The IT major is battling declining revenues from its largest customer and joint venture partner, British Telecom.

According to the sources, in the IT services space, the company will target specialized niche technology companies for acquisition. The company plans to acquire a BPO for supporting overseas customers.

Tech Mahindra is looking for a global expansion and is in search for partner companies for making a foray into emerging Russia as a go to market strategy. In addition, for majority of its overseas operations it will focus on hiring local talent.

It is reported that Tech Mahindra's IT services has around 28,000 employees and another 10,000 work for its BPO operations.

Though the company is battling dwindling revenues from its largest customer and joint venture partner, British Telecom, it hopes to revive its position with new ventures.

To save it from further losses, Tech Mahindra has reduced its reliance on British Telecom with the revenues from that business coming down to about 39 per cent from 90 per cent over the last six years.