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August 24, 2005

Bharti continues outsourcing drive with $125m Nokia deal

Indian telecoms company Bharti Tele-Ventures has added to its reputation as one of the most aggressive outsourcers in its sector by handing over the management of part of its wireless networks to Nokia Corp in a $125m deal.

By CBR Staff Writer

Having previously outsourced its customer contact center functions and core IT infrastructure, Bharti has now chosen Nokia to expand its managed GSM/GPRS/EDGE networks in Mumbai, Maharashtra, Gujarat, Bihar, and Orissa, over a three-year period.

This is Nokia’s second major deal with Bharti, having already won a $275m deal last year contract to supply, manage, and maintain GSM/GPRS radio network equipment.

Earlier this month, Bharti announced it was outsourcing its call center work to four companies in a $230m, multi-year contract. Bharti said its deal with back-office services companies Hinduja TMT Ltd, IBM Daksh Ltd, MphasiS Ltd, and TeleTech Services, would also create economies of scale and reduce capital expenditure over the medium term.

IBM Corp also won a $750m deal with Bharti in March 2004, under which it consolidates, transforms, and manages the company’s IT infrastructure and applications, and develops and markets IT and telecommunications solutions and services for India.

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