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Brief
Vodafone Essar to outsource IT to IBM in India
Vodafone Essar is to outsource all its IT operations to IBM India. The five
year agreement aims to ensure scalable, flexible and resilient IT support for
the fast-paced roll out of new network infrastructure, keeping pace with the
rapid growth in Vodafone Essar’s customer base. At the same time, the agreement
is expected to lead to the faster roll out of varied services to customers,
while delivering greater cost efficiencies to Vodafone Essar.
Under the deal, IBM India will assume responsibility for the management of all
Vodafone Essar’s IT operations with the exception of network service platforms,
spanning both hardware and software. The agreement will encompass the management
of IT services including the development and maintenance of key applications
such as billing, business intelligence and financial systems.
IBM India will also manage other internal IT services for Vodafone Essar such
as data center operations and IT help desk including desk site, while supporting
key areas such as security and change programs. Vodafone Essar will continue
to retain full strategic control of its IT requirements. To ensure greater flexibility
for Vodafone Essar, the deal has been constructed on a risk-sharing basis, under
the control of stringent Service Level Agreements.
“This agreement further demonstrates our continued focus on scalability
and cost control, key criteria for success in the Indian mobile market. In IBM
we have chosen a global partner, committed to the industry and with a proven
track record in the region,” said Asim Ghosh, Managing Director, Vodafone
Essar. “We are confident this will deliver cost efficiency as well as [let
us deliver] enhanced services to our customers.”
The deal builds on Vodafone’s existing agreement to outsource to IBM its
application development and maintenance services in its operating companies
in Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, Greece,
and Italy. That agreement was designed to improve the quality of software produced
as well as deliver greater flexibility.
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