Airtel's Position for the Next Generation

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An Analysis of Gupti's Proposal for Bharti For Bharti Airtel to maintain its lead in wireless telecommunications in India, aggressive steps are proposed involving the outsourcing outlined by Gupta. The proposal has both advantages and disadvantages, but in the final analysis it appears to be a step worth taking because of the limited-risk infrastructural overhaul that it affords Airtel. This paper will assess the good points and bad points of the proposal and show why, despite the bad, it is still a step that will help secure Airtel's position for the next generation. The problem facing Bharti Airtel was the fact that it had to spend far too much time and money negotiating terms with vendors for equipment that was already outdated and useless the minute it was fired up. The $20 million mail server is one example of expenditure waste (Martinex-Jerez, Narayana 2007:1). Bharti Airtel also needed to revamp its IT sector or else risk losing ground to competitors who could boast a more stabilized infrastructure. To tackle both fronts continually was problematic. Gupta desired a solution that could minimize negotiation times and investment risk. The answer was a plan to outsource much of the family-business that was Bharti Airtel to IBM, which looked to control Airtel's telecom base for the next ten years. The good side of this plan was that it limited "equipment investment risk" by transferring it to the vendors (Martinex-Jerez, Narayana 2007:10). Bharti Airtel was in a
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