IBM Considers Renewal Of $1 Billion Outsourcing Contract With Vodafone
IBM Corporation might extend its outsourcing deal with Vodafone, worth $1 billion.
IBM Corporation is expected to extend its contract with an Indian organization. IBM news affirmed that the Mumbai-based telecommunication service provider, Vodafone, is talking with the corporation to renew its $1,000,000,000 worth outsourcing agreement that is about to expire in 2016. It is known for outsourcing services, such as management of software development and network services in the information technology industry.
The New York based giant, which is attempting to retain the agreement, also intends to deliver its data analytics solutions to the telecom organization, as revealed in Economic Times report, while stating that companies, such as Tech Mahindra, Infosys, TCS, and Wipro are also being considered for the agreement.
IBM news today informed that Vodafone has refused to comment, while IT suppliers did not answer the emailed questions. Vodafone is already following a procedure to hire its Chief Information Officer (CIO) when Anthony Thomas left to become a part of GE India. In the current scenario, the telecommunication company is not interested in chopping up the outsourcing agreement in the way Bharti Airtel did and would still prefer a single supplier.
IBM breaking news informed that one year ago, Bharti Airtel extended part of its outsourcing agreement with IBM for 5 years and sliced its other part to IT companies, including Tech Mindra and Wipro, while performing some of the tasks in-house. An official at Greyhound Research, Sanchit Vir Gogia, has stated, “Bharti Airtel is leveraging these newer delivery models to better manage cost and time spent on servicing existing infrastructure and applications. Telecos globally are exploring, so should Vodafone”.
For IBM, its agreement with Airtel was a significant achievement in terms of scalability and the first IT subcontracting order from the second most populated country’s telecom industry. The renewed contract was estimated at $750,000,000 to $850,000,000 for 5 years, as disclosed by Greyhound Research.
Apart from Vodafone, IBM would try to extend its outsourcing agreement worth $800,000,000 to $900,000,000 with India’s renowned telecom company, Idea Cellular, which would be ready for extension in 2019.
It is probable that the corporation’s renewal plans would not only improve its image in the market but also appease the residents of the South Asian country. IBM’s executives should ensure that their deal with Vodafone is extended to grow in the region. The renewal of $1 billion contract would be beneficial for both parties in continuing the business. Many enterprises now value managed-services delivery methods that known for replacing outsourcing.
