What were the reasons for outsourcing of network by Bharti?
Bharti realized pretty early that network is not the core for the company and needs to focus on customers by providing them a reliable, affordable and best in class service experience. To be able to do this, it needed more resources and was unsure of the results due to lack of expertise in this area. Bharti was in no position to manage the network better then Ericsson or Nokia or Siemens (now Nokia Siemens). It was facing competitive pressures from CDMA players (Reliance and Tata) and need to have a single minded focus on cost reduction (refer – How can carriers make 40% EBIDTA margin at 2 cents/min tariff?). They embarked on the outsourcing journey with the following objectives in mind: • Focus on the core and outsource the context • Faster time to market as well as build scalable networks • Enhanced customer experience through better quality of service • Get the best people/company across the globe to manage network • Predictable total cost of ownership (TCO) • Convert CAPEX to growt
Bharti realized pretty early that network is not the core for the company and needs to focus on customers by providing them a reliable, affordable and best in class service experience. To be able to do this, it needed more resources and was unsure of the results due to lack of expertise in this area. Bharti was in no position to manage the network better then Ericsson or Nokia or Siemens (now Nokia Siemens). It was facing competitive pressures from CDMA players (Reliance and Tata) and need to have a single minded focus on cost reduction (refer – How can carriers make 40% EBIDTA margin at 2 cents/min tariff?). They embarked on the outsourcing journey with the following objectives in mind: • Focus on the core and outsource the context • Faster time to market as well as build scalable networks • Enhanced customer experience through better quality of service • Get the best people/company across the globe to manage network • Predictable total cost of ownership (TCO) • Convert CAPEX to growt
