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Monday, March 29, 2004

Indian company Bharti TeleVentures outsources to IBM

This is said to be take the sting out of the current discussion about outsourcing of company functions to India and job losses in the US.

The article, published in the Financial Times on March 27, 2004 states that Bharti TeleVentures, India's largest private telecommunications company, has signed a 10-years outsourcing deal with IBM. IBM will take care of the hardware and software requirements, consolidate Bharti's data centers and manage the company's help desks and disaster recovery capabilities.

Bharti will outsource all its IT requirements to IBM and about 200 engineers will be transferred to IBM's India function.

Some job functions will apparently be transferred to the US, but also to other countries and as such, we are not sure, how this actually takes the sting out of the outsourcing discussion in the States. The majority of the jobs might just stay in India.

It is just that IBM in Asia Pacific in india won a project from an Indian company to do some work for them in India. And isn't this the reason for any company, wherever they are, namely to win some business? As they would go out of business if this wouldn't be the case.

As such, we don't understand the excitement and the headline : "IBM turns tables on indian outsourcing".

(By Asia Business Consulting)