Vodafone Idea, the country’s biggest telecom operator by subscribers, has signed a five-year outsourcing contract with IBM to enhance its enterprise efficiency and reduce IT-related costs.
The company didn’t disclose the deal dimensions but termed it as a multi-million-dollar agreement.
The cooperation will provide Vodafone Idea with a hybrid digital platform, allowing more attractive involvement with customers, improving business efficiency, scale, and agility.
This deal will also help in simplification of its business processes, the business explained in a statement.
This participation will also contribute to Vodafone Idea’s merger synergy objectives by reducing its own IT-related costs, it added.
The Aditya Birla group company has more than 387 million subscribers (as of December 31, 2018).
“Delivering better customer experience through the digital medium is one of the focus areas for Vodafone Idea, said Balesh Sharma, CEO at Vodafone Idea.
“This five-year collaboration with IBM opens new opportunities for us to partner together in domains such as the cloud, artificial intelligence and the Internet of Things (IoT),” he added.
Benefits of the deal
“We will also be able to leverage collateral from the cloud partnership already announced between Vodafone and IBM in Europe. Achieving synergies post-merger from the combination of Vodafone India and Idea Cellular is a strategic priority for us and we continue to be ahead of track,” he said.
IBM will combine infrastructure and applications, including data centers and disaster recovery units, and further accelerate its existing Cloud use.
Solutions set up by Vodafone India and Idea Cellular earlier will likely be merged, and Big Data capabilities enhanced.
IBM is also supporting Vodafone Thought with the option of an extended flexible payment plan structure for the duration of the contract through IBM Global Financing, its wholly owned subsidiary.