...If you were Bharti, what major concerns would you have about entering an outsourcing agreement with IBM? With Ericson, Nokia or Siemens? Bharti Airtel started as a very small company with only $900 capital. Who would have imagined it would have become India biggest Telecom Company. Today, Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the "Airtel" brand, and is headed by Sunil Bharti Mittal. It also acts as a carrier for national and international long distance communication services. Concerns with IBM, Nokia, Ericson and Siemens When Bharti was going through crises of capital expenditures, Gupta introduced two proposals for their benefit. One was to combine with IBM and another was to Nokia, Ericson and Siemens. Their strategy was to hand over the full responsibility of buildup, maintenance and servicing of the telecom network to equipment vendors. As IT technology is not an easily available and cheap market. It does require a lot of investment money to go in. At that stage-when Gupta made the proposal-Bharti didn’t had much. So from the point of a chairman it was the best solution to get the outsourcing done. “The advantages that it has was uncertainty in expenditure would have been low, transferring risk equipment risk to the vendors, pay for use and avoid capacity wastage”(Applegate, Austin &...
Words: 659 - Pages: 3
...Hai |1 Case 5 – Strategic Outsourcing at Bharti Airtel Limited 1. Do you think Bharti should enter the outsourcing agreements outlined by Gupta? What do you see as advantages and disadvantages of such agreements? In my opinion, Bharti should go ahead with its outsourcing agreements outline by Gupta. There are advantages and disadvantages of delegating its telecommunications and IT networks to vendors. First of all, Indian market for Telecom is growing exponentially. In 1989, there were 4.2 million telephone subscribers. By 2003, the number was 54 million. Thus, outsourcing would help Bharti to full capitalize the astounding growth surge. It can use its resources and expertise to only focus on core areas of value-added services, marketing, branding and pricing, and leave the rest to expert vendors. Second, as one of Applegate’s benefits of “incremental outsourcing”, Bharti would reduce its deliver time to market by outsourcing (Applegate, 287). New network set up in a circle takes at least 6 months from planning to operating. Using its vendors’ technology and expertise, new products would be developed faster and the time would be reduced to get the product or service to the end users. Third, Bharti would receive favorable cash flow profiles and cost reduction from outsourcing, according to Applegate (288). The company would transfer equipment investment risk to vendors. It does not have to keep the investment in maintaining excess capacity. Vendors can archive...
Words: 1413 - Pages: 6
...Bharti AirTel Case Digest Bharti AirTel Limited, although in relatively good financial standing, should be very careful in allocating its limited resources. Investments for network installation, maintenance, service and IT systems can cause significant pressure in Bharti’s working capital. As such, investment decisions can make or break Bharti. There are several key reasons why Bharti should outsource its network and IT systems. The first reason is the rapidly changing environment of the telecommunication industries. If Bharti purchases its own network and IT systems, the systems may be obsolete in no time thus wasting the limited capital resources of this company. A second reason is Bharti’s should concentrate on its competencies. Its strength is not technology but operations. This firm’s competency is not in IT design or in network systems. Instead, its core competency is branding and customer service. Therefore, it is in these areas that Bharti has to concentrate. Bharti should leave the technology part to its vendors so that it can maintain its competitive edge. Outsourcing will provide Bharti the option of always getting the best in the field as vendors compete against each other in providing the best offerings at the best cost. Bharti can change networks/IT without worrying about the fixed structures that will become obsolete and useless because of the rapidly evolving technology. Practically, Bharti will in fact be transferring investment risks to the vendors...
Words: 569 - Pages: 3
...Bharti Airtel Case In the year 2004, Bharti Airtel was at an important crossroads where the company needed to make decisions that would be instrumental in deciding how successful the company would be in the future. The company was growing at an incredible pace, 100% per year, and it was having trouble keeping up with the growth in order to maintain the network. The process of budgeting, maintaining vendor contracts, and managing IT capital expenditure were starting to become a formidable challenge for the company. Bhart Airtel needed to understand exactly what its core competencies were and make the appropriate strategic plans to focus on the competencies. Bharti Airtel’s core competency was understanding the customer’s needs and building the brand up. There was a 300-400 million potential Indian phone customers, and Bharti Airtel’s goal was to capture as much of the market share as they could. The problem was that the company was spending much of it’s time and resources on maintaining the expansive network and focusing on it’s Information Technology needs. This led to the company being more focused on it’s IT needs and less on it’s core competency. Akhil Gupta decided to make a revolutionary decision by changing they way things had been done. Instead of focusing the company’s time and resources on expanding and maintain the expansive network, Gupta thought it was a better idea to outsource all of it’s IT needs. This unpopular decision by Gupta meant that Bharti Airtel...
Words: 323 - Pages: 2
...http://www.docstoc.com/docs/21061665/AIR-TEL-PPT http://www.authorstream.com/Presentation/rohit.arde123-323275-airtel-presentation-final-others-misc-ppt-powerpoint/ http://www.moneycontrol.com/company-facts/bhartiairtel/history/BA08 Company History - Bharti Airtel Bharti Tele-Ventures was incorporated on July 7, 1995 as a company with limited liability under the Companies Act, for promoting telecommunications services. Bharti Tele-Ventures received certificate for commencement of business on January 18, 1996.The Company was initially formed as a wholly-owned subsidiary of Bharti Telecom Limited. The chronology of events since Bharti Tele-Ventures was incorporated in 1995 is as follows: http://www.indiainfoline.com/Markets/Company/Fundamentals/Directors-Report/Bharti-Airtel-Ltd/532454 Company Snapshot Bharti Airtel provides telecommunication services primarily to corporate, and small and medium scale enterprises in India. It offers global system for mobile communication (GSM) services, broadband and telephone services, national and international long distance services, and enterprise services. The company's mobile communication services include information services, short message, and prepaid and post paid services, as well as wireless application protocol-enabled Internet access and roaming services. Its telephone services include telephone services, dial-up services, special phone plus services, unified messaging, and audio conference services; and broadband...
Words: 1964 - Pages: 8
...a happy, empowered and sustainable life for everyone Bharti Airtel Ltd. India Sustainability Report 2011- ‘12 mob ile m oney know ledge mobile health mobile education l TV digita mobil e agri cultur e internet the backdrop The Indian economy has seen a significant development in the last two decades. Several hundred million people are benefiting from the country’s progress. Concurrently, India’s population too has risen to more than 1.2 billion, placing an increasing burden on existing resources. Access to basic services like education, health, financial services, banking etc. are often beyond the means of the common person. Airtel’s sustainability journey endeavours to contribute further to our society and to our environment. It is our firm belief that not a single man, woman or child should be denied access to education, health and prosperity. We believe in social inclusion of people everywhere, and have made this the cornerstone of our sustainability programme. We leverage our network presence, reach and accessibility, through mobile telephony, direct-to-home television and broadband services, to contribute towards a sustainable future, not just for people everywhere but also for our planet and economy. We are confident that we can be a force of good, positive change, in society and also augment the efforts of the government, public-private groups, Bharti Foundation and NGOs in the area of sustainability. In 2011, we made a commitment...
Words: 18742 - Pages: 75
...of Singapore and the leadership approaches adopted by the two leaders, and the impact on the organisations. Singtel Singtel is the largest mobile operator in Singapore. It is Asia’s leading communication group, providing a wide range of multimedia and info-communications technology solutions, ‘including voice, data and video services over fixed and wireless platforms’ (Singtel 2012). The main operations are based in Singapore and led by its CEO Ms Chua Sock Koong, the 74th most powerful woman in the world. Chua first joined Singtel in 1989 as a treasurer before being appointed as the CFO in 1999, and advancing her way up as the CEO in 2006. Apart from that, she sits on the boards of several organisations, including Bharti Airtel Limited, Bharti Telecom Limited, and key subsidiaries of the SingTel Group. She is accountable for SingTel’s three key businesses – Group Consumer, Group Digital Life and Group Enterprise (Singtel 2012). StarHub StarHub is the second largest mobile operator in Singapore. Mr Neil Montefiore, who just stepped down on 28 February 2013, led the company for the last 2 years. It offers ‘information, communications and entertainment services for both consumer and corporate markets’ (Starhub 2013). Starhub also coined the term “hubbing” where its services are integrated and converged into one for its consumers. Montefiore is a well-known telecommunications veteran with over 35 years of global experience. In...
Words: 1595 - Pages: 7
...CHP-1, INTRODUCTION ON BHARTI AIRTEL Bharti Airtel Limited, commonly known as Airtel, is an Indian telecommunications services company headquartered at New Delhi, India. It operates in 20 countries across South Asia, Africa and the Channel Islands. Airtel has GSM network in all countries, providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's third-largest mobile tele communications company with over 261 million subscribers across 20 countries as of August 2012. It is the largest cellular service provider in India, with 185.92 million subscribers as of September 2012. Airtel is the third largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. Airtel is the largest provider of mobile telephony and second largest provider of fixed telephony in India, and is also a provider of broadband and subscription television services. It offers its telecom services under the airtel brand, and is headed by Sunil Bharti Mittal. Bharti Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore. Airtel is credited with pioneering the business strategy of outsourcing all of its business operations except marketing, sales and finance and building the 'minutes factory'...
Words: 12985 - Pages: 52
...MGMT 503 Obopay |Michael Irroni | 08 Fall Obopay Lauren O’Brien | Jaspreet Sanghera | LunLun Fu | Ashleigh Jessup | Eila Shargh | Michael Irroni | Nasir Rizvi 08 Fall Obopay is a private company currently located in San Mateo, CA. Since Obopay is a private company, the information utilized for this analysis came from sources such as confidential company documents as well as interviews with the former General Counsel and current consultant, CFO, and SVP of HR. A comparative company to Obopay is the Indian telecommunications giant Bharti Airtel. This company was chosen because its Airtel Money segment offers the same service as Obopay in Obopay’s primary market of India. The analysis presented in this paper is as of May 2012. Part I: Company Background History of Obopay Obopay is one of the first companies to provide mobile payment solutions, integrating mobile technology with money services. The concept behind Obopay and the mobile wallet came to Carol Realini while traveling to Africa where she saw how many people despite not having access to basic banking services did own mobile phones (“TLP SV Speakers for Nov 4: Obopay and Venrock”). Founded by Carol Realini in 2005, Obopay was designed to make banking services as pervasive as mobile phones by partnering with financial institutions and mobile service providers. In the last seven years, Obopay has established partnerships with organizations such as Nokia, MasterCard, AT&T, Verizon, Essar,...
Words: 8034 - Pages: 33
...Bharti Airtel has made strategic organisational changes to enhance its focus on expanding operations to international markets beyond India and South Asia. The company has created a new international business group, which will be responsible for the company's expansion plans. Manoj Kohli, joint managing director and chief executive of Indian and South Asian operations, has been appointed as the head the newly created international business division. Sanjay Kapoor, currently the deputy CEO of the company will be elevated to the position of CEO (India and South Asia), Bharti Airtel. In his new role, Mr Kapoor would have responsibility of leading India and South Asia businesses of Bharti Airtel and will drive growth and business synergies in mobile services, telemedia services, enterprise services and DTH. Sunil Bharti Mittal, chairman and managing director of Bharti Airtel, said: “The next phase of our journey is set to be another game changer - requiring superior thrust and focused leadership. We continue to win in the Indian telecom market, which is going through a phase of hyper competition. At the same time, we will be developing comprehensive plans for our journey to cover emerging markets beyond India and the South Asia.” “Bharti Airtel has one of the finest management teams in the country and a strong leadership pipeline. This new structure will leverage our management depth and build a strong platform for fulfilling our global vision. Manoj and Sanjay, are amongst...
Words: 260 - Pages: 2
...INTRODUCTION Introduction In today’s globalizing economy competition is getting more and more fierce. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. Not only is the number of competitive offerings rising due to globalization of production, sourcing, logistics and access to information. Many products and services face new competition from substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities. Customer perceptions are influenced by a variety of factors. Besides the actual outcome - i.e. did the product or service deliver the expected function and did it fulfil the customers need - the whole process of consumption and all interactions involved are of crucial importance. Background of the Study Today’s globalised information driven economy this can also comprise issues like • How other customers or influencing groups perceive the product or brand • The degree to which the customer feels the actual marketing campaign addresses the most important issues • Responsiveness and service quality of any affiliates, e.g. distribution partners Customer perceptions are dynamic. First of all, with the developing relationship between customer and company,...
Words: 10139 - Pages: 41
...Executive Summary Bharti Airtel, a leading telecommunications provider in India has seen an enormous growth since the opening up of the Indian economy after the economic reforms initiated by the then PM of India, Mr. P.V.Narasimharao towards liberalization, globalization and privatization. Airtel is now the fourth largest telecom company in the world in terms of subscriber base and is the leading telecom carrier in India. The phenomenal growth of Airtel has been due its outstanding and unique business model where it retained its core-functions to itself such as marketing and finance and outsourced its IT functions to companies such as IBM. Airtel has expanded significantly since 1992 due to the competitive advantage it had in the domestic market ( pan-India presence) and only since 2005-06 it started going global foraging into Africa. Significant threats to Airtel come from the lowering of FDI influx into Indian economy and increasing government regulations in the spectrum allocation frame work ,political interference and lobbying. Also the unstable economic conditions in the countries such as Central Africa were not favorable for its expansion in the global markets. Bharti Airtel (or simply Airtel) is an Indian telecommunications company with operations in 20 countries across Asia and Africa. It is headquartered in New Delhi India and was originally conceived and set up by Sunil Bharti Mittal in 1995. At present, Airtel is the world’s fourth largest telecommunication...
Words: 2782 - Pages: 12
...vipul rohit Indian Telecommunication Industry Last Updated: July-September 2008 [pic] The Indian telecommunications has been zooming up the growth curve at a feverish pace, emerging as one of the key sectors responsible for India's resurgent economic growth. India is has surpassed US to become the second largest wireless network in the world with a subscriber base of over 300 million in April, according to the the Telecom Regulatory Authority of India (Trai). The year 2007 saw India achieving significant distinctions: |1 |having the world's lowest call rates |2-3 US cents | |2 |the fastest growth in the number of subscribers |15.31 million in 4 months | |3 |the fastest sale of million mobile phones |in a week | |4 |the world's cheapest mobile handset |US$ 17.2 | |5 |the world's most affordable color phone |US$ 27.42 | |6 |largest sale of mobile handsets |in the third quarter | Segment-wise growth Wireless segment has emerged as...
Words: 5812 - Pages: 24
...the Study There are enough fields which sources are can help to go in deep. But for some limitation I can’t go in every place for collecting information. These are • Time allocation. • I collect the information from some specific person. Every person is not permitted to give me information. • Company is not giving me all information for their rules and regulation. • Maximum information are kept in secured. • All documents aren’t collected timely. Company overview Bharti Airtel Limited, commonly known as airtel, is an Indian telecommunications company that operates in 19 countries across South Asia, Africa and the Channel Islands. It operates a GSM network in all countries, providing 2G or 3G services depending upon the country of operation. Airtel is the fifth largest telecom operator in the world with over 207.8 million subscribers across 19 countries at the end of 2010. It is the largest cellular service provider in India, with over 152.5 million subscribers at the end of 2010.[2] Airtel is the 3rd largest in-country mobile operator by subscriber...
Words: 681 - Pages: 3
...Together good things happen... Bharti Airtel Annual Report 2009-10 Airtel centre The Airtel Centre – Inaugurated on November 13, 2009 Centre of excellence that houses more than 3,000 employees, 13 offices and spread over 600,000 sq.ft. Table Bharti Airtel Annual Report 2010 of contents 1 Corporate information 2 Corporate history and Top 30 shareholders 3 Performance at a glance 4 Awards & honours 5 Chairman’s message 6 Board of directors 7 CEO (International) & JMD’s message 8 CEO (India & South Asia)‘s message 9 Together good things happen 10 Corporate social responsibility 11 Directors’ report 12 Management discussion & analysis 13 Report on corporate governance 14 Secretarial audit report 15 Standalone financial statements with Auditors’ report 16 Consolidated financial statements with Auditors’ report 17 Notice of annual general meeting 2 3 4 5 6 8 12 14 18 24 32 40 46 63 64 115 159 1 Corporate Board of directors Sunil Bharti Mittal Chairman and Managing Director information Group General Counsel & Company Secretary Vijaya Sampath Statutory Auditors Manoj Kohli CEO (International) & Joint Managing Director Non-executive directors Ajay Lal Akhil Gupta Arun Bharat Ram Chua Sock Koong Craig Edward Ehrlich Lim Chuan Poh N. Kumar Nikesh Arora Pulak Chandan Prasad Rajan Bharti Mittal Rakesh Bharti Mittal Tan Yong Choo CEO (India & South Asia) Sanjay Kapoor S.R. Batliboi & Associates, Chartered Accountants Auditors – US GAAP Ernst & Young...
Words: 92085 - Pages: 369
