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Bharti Airtel and IBM announced a new agreement to manage Airtels infrastructure and application services in India over the next five years. While the agreement extends the 10-year outsourcing relationship that the two have had, which ended on March 31 this year, sources reveal that unlike before, when Airtel outsourced its entire IT, the company is now some of the Indian IT companies have. IBM said that the companys analytics capabilities have helped Bharti extend into Sri Lanka, Bangladesh and Africa had contributed to IBM retaining most of the contract. However, the report said, quot;ng anonymous sources from Airtel that mentions some substantial changes to the contract conditions with IBM. While reports earlier cite that Airtel might move significant portions of the contract to companies like TCS and Tech Mahindra, an IBM source informed TOI that a bulk of Airtels total IT outsourcing is still with IBM, and the rest is shared by companies including Tech Mahindra, Infosys and Wipro. While the other operators like TATA, Reliance and New comers are "Bleeding due to fierce Price War, Airtel still has the strong EBIDTA at 40. Furthermore Airtel is clear Market leader with Revenue Market Share (RMS) of 33 and the Customer Market Share (CMS) of 21. Nokia Siemens Networks (NSN) puts the equipments on the Passive infrastructure provided by Airtel through another Managed Service provider, INDUS (Passive infrastructure provider, in laymans language, Tower company). NSN puts the radiating equipments as needed (as per the survey and Market demand) and convert the Spectrum into Airtime Minutes.

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Vodafone, which is worth 1 billion.

Airtel outsourcing case study
Considering the above fact, the Scenario Challenges the popular Golden rules of Business: "Necessity for Core. Competency in the operating Sector" Classical theory (by Late Shri C.K. Pralhad and Gary Hamel) The present study focus on the market study of Indian Telecom market so as to study whether business can sustain its financial and market competencies by out sourcing the core processes.
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