Managed data security services provider Senetas (ASX:SEN) has lost a major consulting contract with Telstra (ASX:TLS).
Telstra has informed Senetas it will not be renewing the contract once it expires on June 30, Senetas said.
Senetas employs a team of consultants delivering services at Telstra’s Melbourne head office. The company said it believes Telstra is planning to outsource the consulting work to India.
Senetas chairman Alan Stockdale said that while the contract loss will have no impact on revenue in FY10, “if the contract with Telstra had been renewed it would have contributed to consulting division revenue in 2011 by up to $3 million.”
But new consulting initiatives and recent contract wins should help offset the revenue loss, he added.