Vi to renew 1bn tech outsourcing deal with IBM report

Telecom player Vodafone Idea (Vi) is reportedly renewing its significant USD 1 billion technology outsourcing agreement with IBM, according to a media report on Saturday.

This deal marks Vi’s business expansions, which is to strengthen its IT infrastructure as it is gearing up for the 5G rollout across diverse Indian regions that include the top 100 cities from its 17 priority markets, the report said additionally.

Further, the report highlighted Vi’s board may also raise a capital of Rs 20,000 crore through a preferential share issue.

While the deal renewal will help the telecom company to improve its customer retention, a portion of the agreement’s continuation will be based on a ‘pay-as-you-go’ model, which could provide more flexibility and scalability for Vi’s services.

Meanwhile, if the renewal materialises, IBM is likely to manage, maintain, and operate Vi’s IT infrastructure, offering tech solutions around cloud computing and customer requirements, enhancing user experience.

The agreement supports modernisation and intelligent automation of data centres using AI to unlock cost and operational efficiencies, boosting productivity levels at Vi. BW Businessworld