IBM signs $1bn outsourcing deal
As per this deal, IBM will manage IT systems for Vodafone Essar, till 2017.
The previous $400 million outsourcing deal between the two companies, which was signed in 2007 for five years, was to expire in 2012. Last month, both companies worked to renew the contract estimated at $800 million to $1 billion.
IBM supplies computer hardware, software and services to its customers in India, which include a number of mobile service providers. The company also has many clients in government sector for whom it is providing hardware and software solutions
One of the executives familiar with the deal said: “The deal could have come up for renewal late this year if this agreement was not reached. It completely ruled out any opportunity for rival bidders”, writes GTB.
India's domestic IT services market is on the rise with new estimates claiming that the market will reach the $15 billion mark by 2015. Research firm Gartner claims that India's IT services market will be worth $9.5 billion by the end of this year, states IT ProPortal.
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