Wednesday, March 28, 2007

Software keeps getting written and keeps getting obsoleted. This seems to be the new mantra.

Well, just imagine the kind of software required to keep a telecom service provider like Hutch or an Airtel to carry on its operations. The software may include all the front end software like activating and deactivating various services, maintaining the profiles of subscribers and keeping a record of the bills paid and even intraweb of a Hutch or an Airtel , maintaining the employee database and all that.

To think about it, it is an enormous piece of software and would cost a company like Hutch or Airtel quite a bit.

So what do they do ?
Simple! They outsource the whole thing!

This is the truth for all the telecom operators worldwide.
Initially, the trend was "New features" or "more bandwidth" and all that.
Now it is "Cost Efficiency". They have invested quite a bit on installation of networks and pay big amounts of money for maintaining the networks and they want to minimise the costs WHEREVER it is possible.

And it seems, after the recent acquisition of Hutch by Vodafone, Vodafone has outsourced its IT operations to the Software Giant IBM. .

IBM will consolidate and manage IT infrastructure and applications for Hutch, India’s fourth largest telco. The contract is likely be on a revenue-sharing basis. “The scope of the deal will depend on the growth of Hutch’s operations in terms of circles and subscribers. As operations ramp up, the deal size and scope is also likely to increase,” sources said.

I guess, this is the kind of business which is going to become mainstream as far as outsourcing is concerned. Indian companies outsource to their Indian counterparts!


sarvagnaani said...

> Indian companies outsource to their Indian counterparts!
hmm..couldnt help noticing..the software is for service that is being provided to indians..the software is being built and maintained by indians..but the profit in both cases goes to non-indian companies(service provider and software provider)..

sudeep said...

my friend, the world is flat....But somehow you strike a note there