IBM in talks with Vodafone in India for outsourcing

13 July 2007

Bangalore: IBM is eyeing outsourcing deals from Indian telecom companies and is in talks with the Indian unit of Vodafone Plc for this.

India is the world's fastest growing mobile market, adding more than 6 million users a month, and telecom companies are stepping up investment on technology. India had 130.6 million mobile subscribers on the popular GSM platform at end-May.

IBM is looking at being a key player in the Indian market with 100 per cent market. IBM is also in talks with unlisted Hutchison Essar Ltd in which British phone firm Vodafone bought a controlling stake this year, for an outsourcing deal.

Last year, Vodafone outsourced key IT functions to IBM, the world's largest technology services company, and Electronic Data Systems Corp.

In India IBM employs 53,000 staff in India, which accounts for 16 per cent of its global workforce and makes its Indian operations the second-largest operation after the United States. The company has won several large contracts in India including one from Idea Cellular.