Vodafone renewed its outsourcing deal estimated to worth $750-850 with IBM extending for another five years.
As stated by both companies, the contact includes IBM’s role in helping Vodaphone in its primary goals. These goals include virtualization of its operations, migrating to the hybrid cloud architecture and consolidating the telecom operator’s data centers across India.
“We are a technology driven organization and introducing the latest advances is key to delivering the best of experiences to our customers”,
~~ Vodaphone India’s Director of Technology & Network, Vishant Vora.
The director also ensures that IBM will help the company in enhancing customer experience with intuitive capabilities and build a cost optimized, flexible and scalable IT infrastructure.
Back in 2007, the contract between the two companies centered on the traditional infrastructure and application services while the new deal on automation, cloud and analytics in order to enhance customer experience. Originally, the $600 million worth outsourcing deal was set to last for five years but was extended to eight.
Similar to that, the new deal too has options for extensions and additions of contracts for IBM’s Softlayer and Bluemix platforms among others, according to Greyhound chief analyst Sanchit Vir Gogia. The additional contracts could increase the contract value to $1 billion by 2023, he added.
IBM India and Vodafone refused to comment on financial terms. “IBM’s capabilities will help strengthen Vodafone’s vision of delivering differentiated client experiences,” Vanitha Narayanan, MD of IBM India, said. DD Mishra, research director at Gartner, said the deal renewal indicates that the partnership between the two organisations is more strategic in nature.
IBM has been strengthening its digital portfolio. This deal is a significant renewal in the Asia Pacific market.., looking at the size and volume of business. “Further to this, we see, IBM has reorganised internally which is expected to enable IBM to bring decision-making much closer to the customer,” Mishra said.