Vodafone Idea is reportedly on the verge of finalising its IT outsourcing contracts. The move is aimed at diversifying its vendor base and reducing its dependence on IBM.
What Happened: Vodafone Idea is expected to sign the renegotiated contracts within the next 10 days, reported Moneycontrol. The telecom giant is aiming to cut operating costs by collaborating with specialised firms in specific areas, rather than renewing the entire agreement with IBM.
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The new deal is almost finalised, with most components being outsourced again, except for certain managed services handled by Tata Communications Transformation Services (TCTS). The previous five-year tech outsourcing contract with IBM, worth $800 million (₹6,725 crore) expired in April 2024. The renewed contract with IBM is expected to be significantly lower in value due to the addition of new vendors.
The impending IT outsourcing deal is of significant importance for Vodafone Idea as it seeks to improve its IT infrastructure. This is crucial to support its expanding 4G network and to prepare for the planned 5G rollout in its top 100 cities within its 17 priority markets.
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