Vodafone in talks with IBM to renew ₹6600 Cr outsourcing contract

Vodafone India has started talks with software major IBM for renewal of a $1 billion (Rs 6,600 crore) outsourcing contract that is set to expire in June 2016, while also sounding out Wipro, Tata Consultancy Services, Infosys and Tech Mahindra, two people familiar with the matter said.

Strategic outsourcing deals are increasingly being replaced by cloud or managed-services delivery methods. “Bharti Airtel is leveraging these newer delivery models to better manage cost and time spent on servicing existing infrastructure and applications. Telcos globally are exploring, so should Vodafone,” said Sanchit Vir Gogia, chief analyst & CEO at Greyhound Research.

Source: ET Telecom

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