Tech giants IBM and Tech Mahindra have ventured into partnership on Tuesday. This collaboration is initiated to deepen their close to two decades-long associations and to build a billion dollar ecosystem for each other in the next three years.

Commenting on the improvement, IBM Chairman and CEO Arvind Krishna and Tech Mahindra Managing Director and CEO CP Gurnani said that about 40 percent of the revenue in the new ecosystem will be driven by Telco and 5G that is powered by hybrid cloud, while 60 percent of the revenues will be driven by other industries.

Arvind further said that Tech Mahindra will add value to IBM's offerings.

He continues, "Partnerships bring in true innovation, capabilities and expertise for our clients and the industry. It is about driving a smaller share of the bigger pie."

Alongside the five strategic focus areas of the collaboration include 5G, data & Artificial Intelligence (AI), automation, cybersecurity, and hybrid cloud.

Gurnani states, "Tech Mahindra has redoubled its commitment to IBM and we will build a billion dollar ecosystem for each other, as we solve problems for our clients."

A few key initiatives underway include launch Tech Mahindra's Blue Marble, a digital transformation accelerator, on IBM cloud for telecommunications to drive 5G momentum; collaborate to grow cybersecurity business with IBM Cloud Pak for security; strengthen and expand portfolio through cloud based offerings; and co-create and co-innovate through innovation labs and centres of excellence.

These innovation centres will be designed to enable development of joint solutions to help clients accelerate their journey to Cloud and AI.

Gurnani has also stated that a technology innovation centre will come up in Bengaluru.

Commenting on the collaboration of both the companies and its results in building such centres, he states, "Such centres will eventually be set up in different parts of the world."