STRATEGIC OUTSORCING- BHARTI AIRTEL

STRATEGIC MANAGEMENT

ANUKRITI GUPTA PG180118

NEEL PRAJAPATI PG180586
RAJDEEP SINGH SALUJA PG180778
SUSHMITA MULEKAR PG181078
VIRAL KAPADIYA PG181198
BHARTI AIRTEL
CUSTOMER RELATIONSHIPS- scope
• Error Free Service: Low call drop
rates, broad coverage,
• Postpaid and Prepaid options
• Blackberry service
• Conferencing, Data Transmission
• Value Added Services: jokes,
games, news, astrology, SMS, ring
tones and caller tunes
• Data collection on customer use to
ensure service quality and
network reliability
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PRODUCT INNOVATION- speed
• High speed fibre optic network
spanning over 24000km for long
distance calling (national and
international)
• I2i undersea cable system- with
Sing-Tel
• SEA-ME-WE4- Singapore France
Submarine Cable, with Singapore
and 13 other countries.
• 2.5G services (EGDE), to be
upgraded to 3G.
INFRASTRUCTURE MANAGEMENT- scale
• 5000 base stations in 2004,
predicted to increase upto 40,000
in 2007
• Boxes: Switching Station (MSC),
base station (BSC)- Purchasing
30%-40% excess capacity to meet
customer demand
• Acquisition of other telecom
operators to ensure UpToDate IT
Systems and applications.
• Expansion to 15 out of 23 circles
in 2001-2002, and 6 fixed-line
licenses.
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TELECOM EQUIPMENT VENDORS

ADVANTAGES
• Lower investments
Need to purchase 30%-40% excess capacity to meet
customer demands and compensate for errors. This
could account for $300M-$400M by 2007
• Hassle free capacity extension
The process of planning, tendering, financing,
purchasing, and installing for new capacity requirements
takes from six months to one year. Customer base
growing by 1.5 million every year
DISADVANTAGES
• Transferring Core Competency
Network management and operations are the core
competency of Bharti Airtel
• Quality Control
A number of quality controls specified in Service Level
agreements (SLA’s), but the quality could not be assured.
Degrading quality could lead to customers switching to
other competitors like Tata, Reliance etc.

• Lower Capex
Upgrading to new technology like 3G requires large
capital investments

• Pay per Usage Model

No payment for unused capacity.

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IT EQUIPMENT VENDORS

ADVANTAGES
• No outsourcing from different vendors
Apart from IBM, Oracle, Bharti had to outsource for
applications which were not offered, like Fraud
Management. These were often incompetent. The new
contract included all services and applications.
• Human Resource
Difficult finding competent IT personnel as they
preferred working with bigger MNC’s
DISADVANTAGES
• Unavailability of applications
Hardware and software application not supported by
IBM will not be available. IBM to work with other
vendors
• Loss of Control
Tied to the financial well being of another company

• Focus on Core Competency

Operations was core competency not IT design. Hence
they could focus more on that.

Our proposal to Bharti Airtel is outsourcing the IT Equipment Vendors as their core competency lies in Network
Management and giving it away would pose the risk of the company losing its core competency.

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