Wipro, Tech Mahindra, IBM and HP are among the companies rumoured to be in negotiations with Telecom Corp of New Zealand for an outsourcing contract potentially worth up to $1 billion, according to reports in India's Economic Times.

"We are in early stages of reviewing our partnership arrangements and as such have asked several vendors to present us with options to review," a Telecom Corp spokesperson told the paper.

The deal is set to replace a $1.5 million IT infrastructure management contract signed with EDS (now owned by HP) in 1999, which expires this year.

According to outsourcing advisory firm TPI, 2010 will be a big year for contract renewals and renegotiations. Analysts at the firm expect between $10 billion and $12 billion in annual contract value due to expire this year to be renegotiated.