The Hindu Business Line : Bharti Tele inks outsourcing pact with IBM for $750 m

Mr Sunil Mittal, CMD, Bharti Enterprises, with Ms Colleen Arnold, Worlwide General Manager, Communications Sector, IBM Corporation, after signing an agreement in the Capital on Friday. — Kamal Narang

New Delhi , March 26

BHARTI Televentures Ltd has inked an agreement with IBM to outsource its hardware, software and IT services requirements valued at $700-750 million spread over a period of 10 years.

Announcing this, Mr Sunil Mittal, Chairman and Managing Director, said that the long-term `on demand business transformation agreement' involved outsourcing of all IT requirements included all customer-facing IT applications like billing, customer relationship management and data warehousing.

In addition, IBM will service Bharti's internal-facing applications like Internet, e-mail and online collaboration, he added.

On the infrastructure front, IBM will consolidate Bharti's data centre, IT helpdesk and enhance its disaster recovery centre capabilities. IBM will also deploy a service provider delivery environment, allowing Bharti the flexibility to introduce the latest in voice, data and content-based services to its customers.

"The deal, which is linked to percentage of revenues generated by Bharti, is estimated to be in $250-275 million for the first five years and $700-750 million dollars for a decade."

Mr Mittal said that the agreement encompasses three components. The first is an initiative to consolidate, transform and manage comprehensive IT infrastructure and applications.

The second is the joint development and marketing of IT and telecom solutions and services for the country.

Further, Bharti would also be the preferred supplier of telecom services to IBM India.

In addition, Bharti would transfer about 200 employees to IBM as part of the agreement.

Mr Mittal also said that the rationale behind the deal is to expand Bharti's footprint in the country by increasing its IT and connectivity needs.

This is the second such outsourcing deal signed by Bharti, the first being the recent one with Ericcson.

Speaking on the occasion, Ms Colleen Arnold, Worldwide General Manager (Communications), IBM, said that both the companies would pursue joint go-to-market opportunities and avenues for selling value-based services in the areas of communications, IT services and convergence.

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