Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
STRATEGIC OUTSOURCING @ BHARTI AIRTEL SECTION B - GROUP 9 PIRAMANAYAGAM M.  12/262 BADRINATH GM  12/260  SAURABH KUMAR  12...
Time line - Bharti Airtel
Operations and services
Future Plan of Airtel <ul><li>Indian Telcom market growth rate – 17% pa </li></ul><ul><li>In 2003, 1.5 mn additions of mob...
What they require ?
Core Competency  <ul><li>Operational Excellence </li></ul><ul><ul><li>Entire network management and intricacies related to...
Proposed Outsourcing deal
Proposed Outsourcing deal
Governing Mechanism <ul><li>Trust the vendors but verify them </li></ul><ul><li>Process </li></ul><ul><ul><li>Monitor them...
Advantages <ul><li>Uncertainties in capital expenditures kept low </li></ul><ul><li>Transferring equipment investment risk...
Problems of Outsourcing <ul><li>More the outsourcing core business – more the dependency on vendors </li></ul><ul><li>Limi...
Vendor Concerns <ul><li>Unused capacity will earn nothing, but necessary for operations </li></ul><ul><li>Inability to inc...
Why Outsourcing <ul><li>Bharthi should go for outsourcing </li></ul><ul><ul><li>Huge capital expenditure needed to help gr...
<ul><li>  Thank You </li></ul>
Upcoming SlideShare
Loading in …5
×

Case Bharti Airtel

9,017 views

Published on

Published in: Business, Health & Medicine
  • Be the first to comment

Case Bharti Airtel

  1. 1. STRATEGIC OUTSOURCING @ BHARTI AIRTEL SECTION B - GROUP 9 PIRAMANAYAGAM M. 12/262 BADRINATH GM 12/260 SAURABH KUMAR 12/261 MURALIKRISHNA BATCHALA 12/248 RICHIE GIFTSON PAUL J 12/265
  2. 2. Time line - Bharti Airtel
  3. 3. Operations and services
  4. 4. Future Plan of Airtel <ul><li>Indian Telcom market growth rate – 17% pa </li></ul><ul><li>In 2003, 1.5 mn additions of mobile user / month </li></ul><ul><li>By 2007, Bharti is expected to have </li></ul><ul><ul><li>GSM service in 5161 towns </li></ul></ul><ul><li>For that, </li></ul><ul><ul><li>Required growth of 100 news towns per month </li></ul></ul><ul><ul><li>Need to hire 2000 to 3000 people </li></ul></ul>
  5. 5. What they require ?
  6. 6. Core Competency <ul><li>Operational Excellence </li></ul><ul><ul><li>Entire network management and intricacies related to call management </li></ul></ul><ul><ul><li>Involves efficient management of network instruments </li></ul></ul><ul><ul><li>Their bread and butter </li></ul></ul><ul><ul><li>Good service to customers </li></ul></ul><ul><ul><li>Helps in providing lower cost to customers </li></ul></ul>
  7. 7. Proposed Outsourcing deal
  8. 8. Proposed Outsourcing deal
  9. 9. Governing Mechanism <ul><li>Trust the vendors but verify them </li></ul><ul><li>Process </li></ul><ul><ul><li>Monitor them continuously </li></ul></ul><ul><ul><li>Updating with latest R&D inputs </li></ul></ul><ul><ul><li>Defined conflict resolution mechanism </li></ul></ul><ul><ul><li>Defined reasons for contract termination </li></ul></ul>
  10. 10. Advantages <ul><li>Uncertainties in capital expenditures kept low </li></ul><ul><li>Transferring equipment investment risk to vendor </li></ul><ul><li>Pay for use and avoid excess capacity wastage </li></ul><ul><li>Lower Human resources cost due to their transfer to vendor companies </li></ul><ul><li>High bargaining power for Bharti, due to high competition between service providers </li></ul>
  11. 11. Problems of Outsourcing <ul><li>More the outsourcing core business – more the dependency on vendors </li></ul><ul><li>Limitation of Bharti to use creative new application – IBM deal would limit them to their applications </li></ul><ul><li>Inertia from existing employees to transfers </li></ul><ul><li>Transfer of network assets built by Bharti </li></ul>
  12. 12. Vendor Concerns <ul><li>Unused capacity will earn nothing, but necessary for operations </li></ul><ul><li>Inability to increase prices to cover the increased risk </li></ul><ul><li>Absorbing Bharthi employees </li></ul><ul><li>Uncertainty in growth of Bharti </li></ul>
  13. 13. Why Outsourcing <ul><li>Bharthi should go for outsourcing </li></ul><ul><ul><li>Huge capital expenditure needed to help growing customer base </li></ul></ul><ul><ul><li>Rapidly changing trends in telecom industry leads to quicker obsolescence of equipments </li></ul></ul><ul><ul><li>Keep the IT applications that are used to tackle competition in-house </li></ul></ul><ul><ul><li>Risk diversified by involving three vendors instead on one </li></ul></ul><ul><ul><li>Proper governing mechanism should be in place </li></ul></ul>
  14. 14. <ul><li> Thank You </li></ul>

×