Singapore: After Cognizant and Infosys it's now Tech Mahindra's turn to jump into the healthcare bandwagon. If reports are to be believed the IT major is planning to set up a healthcare unit to cash-in on the potential outsourcing opportunities in healthcare.

The unit, called nth dimension, has won an IT services project worth about $94.48 million from CircleHealth. Under the new deal, Tech Mahindra, which gets about 10 percent of its sales from healthcare clients now, will develop technologies for patient care and operational delivery, and reduce costs for the UK firm, CircleHealth CEO, Mr Steve Melton said.

Many IT companies have enhanced focus on the healthcare sector on hopes that the implementation of the US Affordable Care Act would boost outsourcing opportunities. Cognizant bought healthcare IT services provider TriZetto Corp for $2.7 billion in September.