Indian telecoms giant Bharti Airtel will outsource its ICT requirements from computing conglomerate IBM as the company gears up to deliver mobile Internet services across the African continent.
The partnership will see IBM deliver computing technology and services to power Bharti's mobile communications network spanning 16 African countries. Financial details of the agreement have not yet been revealed.
The companies claim that the increased mobile communication will go far to speeding up economic development in Africa. Bharti points to a Deloitte report, which found that every 10% jump in mobile penetration is estimated to drive a 1.2% gain in gross domestic product.
“By building a 21st century telecommunications infrastructure for the continent - in effect, treating all of Africa as a system of systems - we expect to help spark transformation not just in communications but across all sectors of society - empowering businesses, governments and individual citizens to connect, innovate and achieve economic growth,” offers Samuel Palmisano, CEO of IBM.
Under a completed agreement, IBM will deploy and manage IT infrastructure and applications to support Bharti Airtel's goal of delivering mobile services to remote locations in Africa.
In addition, IBM will deploy advanced technologies created by IBM Research, including the Spoken Web - a voice-enabled Internet technology that allows users to access and share information simply by talking over an existing telephone. This is particularly compelling for populations with little or no literacy, visual impairments, or which lack access to PCs, explains the company.
Outsourcing success
Frost and Sullivan industry analyst Protea Hirschel says the move is indicative of a strong outsourcing focus in Bharti Airtel's business model.
While the agreement exists in principal only, the companies have publicly committed to a 10-year partnership. However, talks began as early as 2004. Hirschel says the two companies had faced some challenges when talks first began, but these seem to have been ironed out.
She is confident the move will accelerate Bharti's ability to provide affordable telecommunications to the continent. Hirschel says the foundation offered by Zain Telecommunications across the region will limit most of the challenges for the company in the region.
Sunil Bharti Mittal, MD of Bharti Airtel, describes the approach as a transformational business delivery model and maintains that it is a first in Africa's telecoms industry.
“There are huge opportunities throughout Africa to transform how people communicate and how communities interact. Delivering on that opportunity through affordable mobile communications for everyone is our focus,” he concludes.
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