Bharti Airtel Limited Case Study

One of India's largest telecommunications provider, Bharti Airtel Limited, should enter into an outsourcing agreement with its vendors. The fact that Bharti's core competency is in telecom operations limits the company's ability to expand its network systems and software. Bharti's continued expansion has contributed to a fragmented IT network that is consistently incompatible with the foundation of the company's baseline system. Based on Gupta's proposal, the advantages primarily involve significantly reducing Bharti's risk of developing and maintaining a revolutionary network. Bharti will place the arduous task of revamping its network capacity on its vendor. Bharti will not only negotiate for increasing its telecom coverage, the company will also demand that the amount of added erlang capacity will be properly utilized. In addition, the vendor would be contractually bound to maintain the network while giving full ownership rights to Bharti. In all, this agreement will keep costs down by reducing Bharti's maintenance fees since the company would not have to hire added human capital and purchase replacement parts and equipment. The disadvantage would be not taking to account the continued progress of newer technology. Bharti is paying for the maintenance of its installed system, but the company must factor in newer innovations that could further reduce its costs. Bharti cannot remain static as these developments occur. Similarly, the implementation of a new network would also require training. Bharti must take into account that if it wants to deliver quality customer service, its IT team must be equipped with the knowledge required to operate within its current system. Regardless if it involves its three primary vendors upgrading its network capacity, or IBM's proposed work to revamp all things IT, Bharti has to train its current and future employees who will interface with its newly acquired systems. Standardizing and