03-27-2004, 10:13 PM
came via email. NOT SURE as to how authentic it is since the URL is pointing to something else.
Bharti ships jobs back to US
Pioneer News Service/ New Delhi
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->At a time when the West is rallying against outsourcing to Indian companies, telecom major Bharti Tele-Ventures has done just the opposite. In probably one of the biggest deals in recent times, Bharti has outsourced its entire IT operations to US-based IBM, which has operations in India.
The deal is worth $250-275 million over a period of five years and $700-750 million over 10 years, said group chairman Sunil Mittal at a news conference here on Friday. The deal also envisages that IBM India use Bharti as its preferred supplier of telecom services such as bandwidth, satellite connectivity, last-mile wireless, wireline access, and national and international long distance communication solutions.
The two companies will also jointly pursue market opportunities and avenues for selling value-based services in the areas of communications, IT services and convergence.
Mr Mittal said that Bharti would also transfer 200 of its staff to IBM India to manage outsourcing IT work. At present, IBM India has about 9,000 employees.
The scope of the outsourcing work to IBM India includes all hardware, software and IT service requirements of Bharti. This includes all customer-facing IT applications, such as billing, customer relationship management and data warehousing. IBM will also service Bharti's internalfacing applications like intranet, e-mail and online collaboration
Asked why the outsourcing contract was not awarded to any Indian IT company, Mr Mittal said that though there are competitive Indian companies, IBM fitted Bharti's requirements in the most comprehensive manner.
However, he did not reveal the amount Bharti would save on account of outsourcing its IT operations to IBM saying that the deal was not just about costs, but that in the long-run the company will certainly save a lot.
Mr Mittal also said that Bharti has not put in any exclusivity clause in the deal and IBM was free to enter into similar contracts with other telecom companies in India.
He said that once IBM enters into contracts with other telecom firms then the contract price will reduce and Bharti as well as other firms will benefit. On the telecom services front, Mr Mittal said that India will have 100 million customers in the next two years and Bharti will have 25 million customers.
At present the total subscriber base of Bharti is little over seven million.
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Bharti ships jobs back to US
Pioneer News Service/ New Delhi
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->At a time when the West is rallying against outsourcing to Indian companies, telecom major Bharti Tele-Ventures has done just the opposite. In probably one of the biggest deals in recent times, Bharti has outsourced its entire IT operations to US-based IBM, which has operations in India.
The deal is worth $250-275 million over a period of five years and $700-750 million over 10 years, said group chairman Sunil Mittal at a news conference here on Friday. The deal also envisages that IBM India use Bharti as its preferred supplier of telecom services such as bandwidth, satellite connectivity, last-mile wireless, wireline access, and national and international long distance communication solutions.
The two companies will also jointly pursue market opportunities and avenues for selling value-based services in the areas of communications, IT services and convergence.
Mr Mittal said that Bharti would also transfer 200 of its staff to IBM India to manage outsourcing IT work. At present, IBM India has about 9,000 employees.
The scope of the outsourcing work to IBM India includes all hardware, software and IT service requirements of Bharti. This includes all customer-facing IT applications, such as billing, customer relationship management and data warehousing. IBM will also service Bharti's internalfacing applications like intranet, e-mail and online collaboration
Asked why the outsourcing contract was not awarded to any Indian IT company, Mr Mittal said that though there are competitive Indian companies, IBM fitted Bharti's requirements in the most comprehensive manner.
However, he did not reveal the amount Bharti would save on account of outsourcing its IT operations to IBM saying that the deal was not just about costs, but that in the long-run the company will certainly save a lot.
Mr Mittal also said that Bharti has not put in any exclusivity clause in the deal and IBM was free to enter into similar contracts with other telecom companies in India.
He said that once IBM enters into contracts with other telecom firms then the contract price will reduce and Bharti as well as other firms will benefit. On the telecom services front, Mr Mittal said that India will have 100 million customers in the next two years and Bharti will have 25 million customers.
At present the total subscriber base of Bharti is little over seven million.
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