In one of the largest IT deals in the European market, the NYSE-listed technology services major Computer Sciences Corporation (CSC) outbidded Indian software services player, HCL Technologies, to win an outosurcing contract from steelmaker ArcelorMittal, people involved with the transaction said on condition of anonymity.

The other majors in the running for this deal included global biggies HP , IBM and Capgemini while the only other Indian contender was Wipro Technologies. The contract from the world�s largest steelmaker is worth $600 million, spread over five years, and CSC will now work on consolidating ArcelorMittal�s IT infrastructure across Europe which would include maintaining the firm�s data centres.

Industry observers says CSC won over HCL in the last lap due to its geographical and cultural proximity which will make it easier and cost effective for the company to take on Arcelor Mittal employees on its rolls.

�HCL is one of the few IT companies that is open to taking on employees from other companies on its rolls since it has experience. But the problem lies in the fact that it will be more expensive for HCL than for a company like CSC to implement,� says Avinash Vashistha , CEO of advisory firm Tholons.