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Airtel Limited
GROUP 8
M Gautam 13P081
Mitual Jain 13P086
Nitin Dangwal 13P094
Anupama Rana 13P195
Nikhil Saini 13P218
Palak Khaneja 13P219
Prathmesh Waghmare 13P221
About Airtel
A family owned business that was started in 1995 and launched its
towns)
Increase the number to base station from 5000 to 40000 by March
2004
This would mean hiring of over 2000-3000 people
Current Problems
Keeping pace with expansion
o Industry is growing at an exponential rate, it is important to match the industry
growth rate
competitive
IT Requirements
o Need an IT network that could scale up to match the size of the organization it has
projected
o Scalability is a problem with the current set-up
o IT infrastructure is further complicated by incompatible IT system
Time and cost involved in frequent tendering and negotiations could be avoided
Avoiding a possible conflict of interest associated with vendors wanting to sell more
boxes, while Airtels intent to minimize the same
Outsourcing partner would need to bear the burden of the 30-40% excess capacity
Possible Concerns:
Outsourcing partner might not be willing to invest in excess capacity, in order to avoid
risk of demand fluctuations
Forecasts of the two companies might vary which will affect resource allocation
Strategic objectives of network infra partner and that of Airtel might be different
Partner might not be willing to absorb Airtels employees, also, different work cultures
and HR policies
Outsourcing IT Infrastructure
Benefits:
Improved scalability
Possible Concerns:
S/w & h/w applications not supported by IBM would be no longer available
Would mean losing several IT employees. Partner might not be willing to absorb Airtels
employees, also, different work cultures and HR policies
Vendors Perspective
IT Vendors
Network
Vendors
Opportunities
Opportunities
Increasing equipment
prices to cover risk
Equipment investment
risk
Absorbing Airtels
employees in a different
culture
Concerns
Concerns
Network
Inhouse Outsourced
Focus on
Core
Competency
High
scalability and
flexibility
Status Quo
High Capex
Less
Scalability
More Control
Scalability in IT
infra
No threat of
obsolescence of
technology
Still high capex
required for
managing network
Inhouse
Outsourced
IT Capabilities
Thank You