Australian telco Telstra Corp. on Tuesday said that it has awarded a five-year expanded application development and maintenance contracts worth $450 million to EDS and Infosys.

While maintaining IBM as a strategic partner in the application development and maintenance space, Telstra renewed its infrastructure management contract for the next five years, for $745 million.

The move forms a part of the company’s vendor consolidation exercise, adopted to reduce the cost of managing its IT systems. Telstra shrank its IT service providers from four- EDS, IBM, Infosys and Satyam - to three.

This slimming down of vendors is a slice of Telstra’s larger strategy of overall transformation. As of now, Telstra has already reduced the number of suppliers by almost 20 percent, translating into saving of $226 million this year.

However, Telstra refrained from commenting if Satyam will be a part of the deal.