Bharti Airtel

665 Words Mar 26th, 2014 3 Pages
If you were Bharti, what major concerns would you have about entering an outsourcing agreement with IBM? With Ericson, Nokia or Siemens?

Bharti Airtel started as a very small company with only $900 capital. Who would have imagined it would have become India biggest Telecom Company. Today, Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the "Airtel" brand, and is headed by Sunil Bharti Mittal. It also acts as a carrier for national and international long distance communication services.

Concerns with IBM, Nokia, Ericson and Siemens
When Bharti was going through
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The vendors are much bigger, and they are worldwide companies” (pp. 382). Along with that the company board of directors though that by outsourcing it would put the company in a positions where they are fully depend on the vendors. Excessive dependency would harm their company internally as well as externally.

On the other hand, vendors had their concerns they thought “they were concerned with the risk and the need to get “buy-in” from the top levels in their organization” (Applegate, Austin & Soule, 2009). One of the major concerns what Bharti looking at was “if the vendors turned down this business now, making it look as if they were unwilling to take risk in India, they might later be locked out of lucrative deals not only with Bharti, but perhaps with other operators as well” (Applegate, Austin & Soule, 2009).

Looking at the future “Bharti Airtel Ltd, which is currently re-negotiating its 10-year information technology (IT) outsourcing contract with International Business Machines Corp. ( IBM ), is set to hand out more business to other technology services vendors led by Tech Mahindra Ltd and reduce IBM’s share of the contract in what will be the biggest overhaul of the landmark outsourcing deal.

The latest developments will also set the agenda in the way IBM’s other large telecom contracts in India with Vodafone India Ltd and Idea Cellular Ltd are negotiated when they come up for renewal in a few years’ time. IBM has a five-year contract

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