Vodafone Idea Has Signed A Multi-Million-Dollar With Tech Giant IBM For Enhanced Services

Dhir Acharya


While Vodafone Idea did not reveal the exact worth of the deal, some reports said it could be $700 million.

Just late last week, Vodafone Idea Ltd, the largest telecom operator in India, announced that it has made a five-year IT outsourcing deal with IBM, the deal was said to be worth multiple millions of dollars.

According to the company’s statement, this contract will benefit its merger synergy objectives due to a reduction in IT costs. In particular, the collaboration will give it a hybrid cloud-based digital platform so that it can engage with its 387 million subscribers more intimately, which improves business agility, efficiency, and scale as well as helps simplify its business processes. While Vodafone Idea did not reveal the exact worth of the deal, some reports said it could be $700 million.

With the new infrastructure, as per the statement, the constraints preventing exponential growth of data usage will be removed through increasing video consumption, digital commerce, and streaming. In addition, this will help the company improve the experience for millions of businesses and individual customers across India. The statement reads:

From this five-year deal, there will be more chances for expanding collaboration to domains such as AI, IoT, and the cloud.

Vodafone Idea CEO Balesh Sharma said that the company can also benefit from the current cloud partnership between IBM and Vodafone in Europe. Obtaining synergies following the Vodafone India-Idea Cellular combination is its strategic priority.

Tech giant IBM, through its IBM Global Financing subsidiary, is offering Vodafone Idea with an extended flexible payment plan structure.

As stated by Vodafone Idea, IBM will continue to provide the company with enhanced services to take the most advantage of Idea Cellular and Vodafone India’s prior capabilities. It will consolidate infrastructure and applications including disaster recovery centers and data centers, as well as boost current cloud usage.

As per IBM India, Managing Director Karan Bajwa expressed confidence in the collaboration of their industry expertise with AI capabilities and hybrid cloud, data analytics which will help Vodafone Idea bring about great service value and customer experience.

On the other hand, analysts believed that major players like Bharti Airtel and Vodafone Idea are making big investments to enhance their network capacities as well as get their infrastructure ready for the future.

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