IBM to Renew its Biggest Indian IT Contract, Faces Stiff Competition
Bangalore: International Business Machines Corporation (IBM) has started discussions to renew its information technology (IT) contract with Bharti Airtel, India’s biggest mobile-firm, estimated to be valued around $2.5 billion, which also is IBM’s biggest IT contract in India, reports livemint.
As IBM prepares itself to refurbish the contract, the world’s largest computer service firm is facing some stiff competition from its rivals like never before. Ten years ago, when the deal was first signed, the net worth was around $750 million, and now with just into a year to expiration, the deal is estimated to be over $2.5 billion. Another interesting fact is, ten years ago Bharti Airtel had just 8 million subscribers, and as of now the telecom giant boasts of more than 260 million subscribers globally.
The outsourcing contract, meant for managing software applications and computer hardware for Airtel, has grabbed a lot of eyeballs across the world, since there are confirmed reports of Airtel involving discussions with IBM’s rivals including Wipro, Accenture, TCS and Capgemini, and this move has set the contract signing to become the most intense battle among multinational and Indian software rivals vying for the deal.
“Ten years ago we could not have even dreamt of chasing a contract of this size and complexity—but a decade is long enough time to prepare,” revealed one of the senior executive representing a multinational firm chasing this opportunity.
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