ArcelorMittal, the world’s largest steel company, has shaken up its outsourcing arrangements in a move towards a more global IT supply model.

After an in-depth assessment of its supply model, the company has formalised its framework agreements with Satyam and Mindtree which will be valid until 2011. The specifics of the agreements will be fleshed out after consultation with ArcelorMittal’s key stakeholders.

ArcelorMittal hopes the agreements will improve the cost-effectiveness and flexibility of the organisation whilst allowing “internal ArcelorMittal IT employees to focus on high value adding activities”. No jobs are being cut at the company to make way for the arrangements.

Subu D Subramanian, Director and Senior VP at Satyam Computer Services Ltd, said “This large deal provides Satyam a very significant opportunity to serve ArcelorMittal with integrated process and technology solutions leveraging our industry domain expertise and solution architecting capabilities”.