Things for providing error free customer service with

Things Bharti needs to do:• Operations: Bharti needs to increase base stations from 5000 in the year 2004 to 40000 in the year 2007. This would cost Bharti $ 300 million to $ 400 million• HR: For building and maintaining the new base stations they need to hire 2000 to 3000 more people.• IT: Bharti needs to make huge up-front investments in IT to get the right architecture in place such as Telecom network software, Customer management information and business support software. Bharti’s core competencies were in its excellence in Operations are as follows:• Customer Service: It is known for providing error free customer service with very low call drops and a broad coverage which ensures a cost-efficient transmission• Fibre Optic network: The fibre optic cable network spanned 24000 km and covered all major cities in the country. • EDGE: Bharti has also deployed a 2.5 GSM compatible technology that will allow it to upgrade to 3G quickly• International collaboration: Through the group’s participation in the i2i undersea cable system. It has also entered a JV with SingTel and 13 other telecom groups for the construction of SEA-ME-WE4Yes, Bharti should go for Outsourcing because:• The Vendor would provide Bharti with network capacity and Bharti would make the actual payment only when the capacity is up and running. • Huge Capital expenditure is needed to help in capturing the growing customer base• Rapidly changing trends in telecom industry leads to quicker obsolesce of equipment• IBM will provide IT applications for complete and comprehensive management service• Risk will be diversified as now three vendors will be involved• There will be new quality testing mechanismAdvantages:• Bharti would have to pay only for used capacity and not for any unused capacity• Responsibility of maintaining the network in good working order will rest with the equipment supplier• The HR cost will be reduced as many of the employees will be transferred to the vendor companies• Bharti will have high bargaining power as there might be some competition between the service providersDisadvantages:• Too much dependency on the vendors would be a concern• IT and marketing department were worried that software or hardware applications not supported by IBM might not be available• IBM might not be willing to work with other vendors and Bharti might not have access to certain creative new applications • The HR team was concerned if all the 1000 employees would be comfortable with the transfer or vendors might not be ready to accept themFollowing would be the major concerns for Bharti in entering an agreement with IBM:• Too much dependency on the vendors would be a concern• IT and marketing department were worried that software or hardware applications not supported by IBM might not be available• IBM might not be willing to work with other vendors and Bharti might not have access to certain creative new applications Following would be the major concerns for Bharti in entering an agreement with Ericsson, Nokia or Siemens:• The HR team was concerned if all the 1000 employees would be comfortable with the transfer or vendors might not be ready to accept themFollowing would be the concerns about entering an outsourcing agreement for IBM:• IBM had still not envisaged a revenue sharing agreement with the clients• IBM would have to invest today in hardware and software for which Bharti would only pay up in 5 or 10 yearsFollowing would be the concerns about entering an outsourcing agreement for Nokia:• If they turned down Bharti now they might miss out on any future opportunities to form a similar agreement• Nokia had a concern as to how they will absorb the hundreds of employees from Bharti• Nokia wanted to concentrate more on capturing the current market share and had very little business with Bharti