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| Monday, 29 March 2004 |
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IBM wins India telecoms outsourcing deal International Business Machines, the US computing and information technology services group, has won a 10-year outsourcing contract worth up to $750m - from an Indian company. The deal with Bharti Tele-Ventures, India's largest private telecommunications company, will see some jobs transferred from Asia to the US and France. Concern about service-sector jobs moving to low-cost economies has caused a political backlash in the run-up to the US presidential elections in November. Yesterday both companies cited their deal as evidence of the benefits of outsourcing. Sunil Bharti Mittal, chairman of Bharti Tele-Ventures, said: "Arrangements like this will take the sting out of outsourcing. We're outsourcing the management of our IT environment to improve cost-efficiency and service flexibility." Under the terms of the 10-year contract, the US group will take care of Bharti's hardware and software requirements, consolidate its data centres and manage the Indian group's help desks and disaster recovery capabilities. IBM will also take over Bharti's customer billing and customer relationship management operations. About 200 Bharti computer engineers will be transferred to IBM's Indian unit, which already has about 9,000 employees. However, some work will be transferred to IBM's global telecoms innovation centre in Le Gaude, southern France, and to the US, where about 30 per cent of IBM's global services workforce is located. "We are a global company and some of the work in support of the contract will be done overseas," said Dean Douglas, IBM's vice-president for global services. |
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