Bharti signs IT outsourcing deal with IBM
Bharti Tele has signed an IT outsourcing deal with IBM India. The 10-year long deal is estimated to be in the range of $700-750 million.
Bharti Tele-Ventures has awarded an information technology management order to the Indian unit of IBM. The total deal for a 10-year period is likely to be in the range of $700-750 million, while for the first five years it is estimated to be in the range of $250-$275 million, reports Reuters.
The deal involves outsourcing of Bharti Tele's hardware, software, and IT service requirements to IBM. The agreement specifies that payments made to IBM India will be linked to the percentage of revenue generation by Bharti Tele and pre-defined service level agreements. The percentage-linked revenue payment is modelled to decrease with Bharti Tele's increase in revenue.
The deal includes all customer-facing IT applications like billing, customer relationship management, and data warehosuing. In addition, internet, e-mail and online collaborations are also included in it. On the infrastructure front, IBM will consolidate Bharti Tele's data centre, IT helpdesk, and enhance its disaster recovery centre capabilities