Vodafone Idea Outsourcing Deal To Exceed USD 1 Billion for IBM India

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Vodafone Idea Ltd. (VIL), India’s top telecom operator, may miss an internal deadline of December 2018 to finalise new IT contracts, and is holding advanced talks with US software major IBM to finalise a multi-year deal by March end, which, some estimates suggest, could well be worth over $1 billion (Rs 7,000 crore).

Sanchit Vir Gogia, chief analyst and founder of Greyhound Research, said the deal is critical for IBM given the fact that it the most sizeable business for the company.

“IBM on its part has done well to evolve offering like Watson and other things, which will be clearly a value-add for VIL. This deal should well exceed a $1 billion for IBM India in size over a period of time,” he said.

Gogia said this deal will be a reflection of how the market is changing — higher need of value-added service than basic infrastructure services. “The focus of such deals should be more on analytics, Artificial intelligence for automation, and using all these technologies for improving customer experience because it is a highly competitive market.”

[Economic Times]


Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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