Telstra will not extend its consulting services contract with ASX-listed Senetas past June 30, the network encryption company has announced.
In a statement to the ASX, Senetas said it "understood" that Telstra would be outsourcing the service to an Indian-based consultancy.
Senetas' Consulting Division has had a team of consultants delivering services around application development and production, maintenance and support projects at Telstra's Melbourne head office
A Senetas spokesman said the contract had previously been renewed annually for "the best of a decade".
But Senetas chairman Alan Stockdale said the company will not be impacted "by the revenue loss this fiscal year".
"However, if the contract with Telstra had been renewed it would have contributed to consulting division's revenue in 2011 by up to $3 million," he said.
"The company expects that new consulting initiatives, recently won consulting bids and the performance of the company's security products division will help offset the revenue loss in 2011 and beyond."
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