9-107-004 REV: DECEMBER 4, 2007 F. ASÃS MARTÃNEZ-JEREZ V. G. NARAYANAN strategic Outsourcing at Bharti Airtel Limited: One Year Later Not just now(prenominal) did we sign a terrific set of deals . . . we have redefined the multiplex vendor-operator relationship in this industry! â€" Akhil Gupta, May 2005 In frame 2004, Bharti signed a deal with IBM for a 10-year partnership establishment for an ondemand business transformation with payments based on a influence percentage of Bhartis revenues. In July 2004, Bharti signed the last of iii successive deals with its telecom vendors arranging for the transfer of the buildup and management of its telecom ne cardinalrk to vendors Ericsson, Nokia, and Siemens. Its audacity in entering these arrangements landed Bharti on the front page of the Wall Street Journal and attracted the maintenance of telecom operators worldwide with its reverse outsourcingâ€"the story of an Indian follow outsourcing its telecom and IT network to the West.1 Bhartis arrangement with the telecom vendors was do on the basis of installed erlang capacity and was structured in two parts. The first outlined the network physical body and installation. The second pertain the maintenance and running of the network once it was installed.
For network design and installation, Bharti would pay its vendors according to the erlangs of capacity installed. In keeping with Bhartis original request, actual payment for capacity was make only once the capacity was up and running and had been used by customers. To respond to vendor concerns, a clause was introduced providing that in slip-up the capacity remained unused over a certain period, it would be either redeployed elsewhere or payment would be made to the vendor. To ensure that differences in user density per base send would be taken into account, prices per erlang were to increase in case of lower-than-anticipated general density and vice versa. These adjustments would be made according to a formula agreed upon in advance.... If you want to get a full essay, order it on our website:
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