Bharti Airtel - 4 Airtel plans to outsource all its...

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4) Airtel plans to outsource all its activities except marketing, customer service, and finance. IBM would provide Bharti with complete and comprehensive end-to-end management service for supplying, installing, and managing all of its hardware and software requirements. By using IBM’s IT infrastructure and standardized business frameworks, Airtel would reduce their capital expenses and increase the quality of customer experience. Furthermore, Airtel wants to outsource their telecom networks to Ericsson, Nokia Siemens in order here again to reduce its capital expenses. By taking the perspective of the board of directors, the employees and the IT department, this section presents the major concerns involved in these outsourcing agreements. We will first place ourselves in the shoes of the board of directors, representing the company as a whole, we will then go on with the possible concerns Airtel’s overall workforce might have and we will end up by taking the perspective of Airtel’s IT department. Airtel’s board of directors, representing the overall company might develop concerns about four major factors: the company’s adaptation to the new environment, its loss of independence, the loss of control over certain systems and services and the security risks involved with exchanging information. Indeed, as Airtel wants to outsource to multinational companies, the entire company will have to accommodate and integrate a new culture and new best practices. The members of the board being long time telecom industry practitioners
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