Why did Bharti Airtel Reverse-OutSource?

Everybody wondered Why Bharti Airtel oursourced to IBM. Though in later press announcements and discussions, they conveyed a message that 'IBM is an Indian company' and all that spin, but the real reason is lack of capability and confidence in India's own outsourcing giants.

Well, Sunil Mittal says it all, why they did it.

What's truly innovative about Bharti's approach is that it reverses the stereotype about outsourcing - that it's something Indian firms do for big U.S. and European multinationals. Mittal says he never seriously considered solving his growth problems by partnering with Indian firms. "I can't risk it," he says. "They've never done this kind of thing. They're new, I'm new."

Source: Asia businessman of the year: Sunil Mittal, Bharti Airtel - January 22, 2007

India’s Bharti outsources to IBM in a $100 Million deal

When you hear the word ‘outsourcing’, which country comes to your mind? I bet, it is India. India in the last few years became synonymous with outsourcing and painted a huge colorful picture of itself on the world map because of outsourcing. And recently, India upgraded its image as the Innovation pool and buzzing with 10s of startups incubated every other month.

But in a record deal of $100 Million over the next 7-8 years, India’s own Bharti (Airtel brand), the largest private Mobile operator in India, outsourced to IBM to provide better Content delivery platforms targeted for Indian audience.

Read more at Reuters press release and an IBM Case Study (an interview that includes Sunil B.Mittal, Bharti’s Chairman.


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