L&T Technology Services has signed a five-year contract with Nokia to support the Finnish telecom giant’s engineering and research and development work in India, a deal that puts Indian engineering talent at the heart of next-generation telecom and artificial intelligence infrastructure. The Bengaluru-headquartered engineering services firm announced the agreement on Monday, October 26, 2026, and its shares climbed in morning trade as investors welcomed the long-term mandate.
The collaboration brings together LTTS’ engineering depth with Nokia’s telecommunications technology, and it runs far beyond a typical vendor arrangement. Under the agreement, LTTS will support Nokia’s R&D programmes across product engineering, software development, system integration and ongoing product support, working through an integrated operating model alongside Nokia’s global R&D teams.
A dedicated centre for next-generation telecom
As part of the deal, LTTS will set up a dedicated Offshore Development Center (ODC) in India to support Nokia’s engineering and R&D initiatives. The centre will focus on next-generation compute and AI infrastructure engineering, the data-centre-grade computing that underpins modern telecom networks and the AI supercycle now reshaping the industry.
LTTS will also create a dedicated engineering team in India to support Nokia’s Technology Center globally. That team’s work will span 5G networks, intelligent automation, AI-driven operations and AI infrastructure, areas where telecom operators are racing to cut costs, automate networks and prepare for the next wave of connectivity.
The company said the engagement aligns with its Lakshya 31 strategy, which places next-generation compute and AI infrastructure at the centre of its growth ambitions.
Why Nokia is doubling down on India
For Nokia, the deal deepens a footprint it has built in India over decades. Vivek Jaiswal, senior vice-president of engineering at Nokia, said India is an important innovation hub for the company and described LTTS as a critical partner that will bring engineering expertise to expand Nokia’s R&D footprint and accelerate innovation in what he called a strategically important geography.
Alind Saxena, executive director and president for strategic initiatives and growth markets at LTTS, said the agreement reflected the confidence global technology companies place in the firm’s engineering expertise.
The financial value of the five-year contract was not disclosed, which is common for engineering services deals of this kind, where work is ramped up in phases rather than billed as a single lump sum.
What the deal means for India’s engineering story
The agreement lands at a moment when India is trying to move up the technology value chain, from conventional software services to deep engineering work in semiconductors, telecom and AI infrastructure. Long, multi-year R&D mandates from global technology majors are exactly the kind of work Indian engineering firms have been chasing, because they bring stable revenue, specialised skills and exposure to cutting-edge programmes.
- For LTTS: a five-year anchor engagement with a global telecom leader, strengthening its telecom vertical and its AI infrastructure credentials.
- For Nokia: a scaled engineering base in India, close to a large talent pool, to support its global product roadmap.
- For India’s tech ecosystem: more high-end R&D jobs and deeper capability in 5G, automation and AI-driven network operations.
LTTS, a subsidiary of Larsen & Toubro, provides engineering research and development services across telecommunications, industrial products, medical devices and transportation. As of September 30, 2026, the company had 24,035 employees, 21 global design centres, 31 global sales offices and 111 innovation labs, according to its release.
What to watch next
The near-term signals will be hiring at the new development centre, the pace at which joint engineering programmes ramp up, and whether the partnership extends into newer areas such as 6G research and AI-native networks. Investors will also watch LTTS’ telecom vertical in coming quarters for signs that the Nokia engagement is translating into revenue growth.
For now, the deal stands as one of the more significant India telecom engineering announcements of the year: a five-year bet by a global telecom leader on Indian engineering, and a vote of confidence in the country’s growing role in building the networks that carry the world’s data.
FAQs
What did LTTS and Nokia announce?
L&T Technology Services signed a five-year contract with Nokia to support Nokia’s engineering and R&D activities in India, including product engineering, software development, system integration and product support.
What is the Offshore Development Center?
It is a dedicated centre LTTS will establish in India to support Nokia’s engineering and R&D programmes, focused on next-generation compute and AI infrastructure engineering for telecom solutions.
Which technologies will the teams work on?
The work spans 5G networks, intelligent automation, AI-driven operations and AI infrastructure, along with product engineering and systems integration.
Was the deal value disclosed?
No, the companies did not disclose the financial value of the five-year contract.
What is LTTS’ Lakshya 31 strategy?
It is the company’s growth strategy focused on next-generation compute and AI infrastructure, and the Nokia engagement is positioned as part of that push.
The Nokia deal adds another long-term anchor to LTTS’ order book, and it underlines a wider shift: the world’s telecom future is increasingly being engineered in India.
