Bharti Tele-Ventures Ltd on Friday signed an information technology outsourcing deal with infotech major IBM, estimated to be in the range of $700-750 million for a ten-year period.
"The total deal size for the ten-year year period is likely to be in the range of $700-750 million. For the first five years, it is likely to be in the range of $250-275 million," Sunil Mittal, chairman and managing director, Bharti Enterprises, told newspersons in New Delhi.
The deal involved outsourcing of BTVL's hardware, software and IT service requirements to IBM, he said.
The agreement specifies that payments made to IBM India will be linked to the percentage of revenue generation by BTVL and pre-defined service level agreements. The percentage-linked revenue payment is modelled to decrease with BTVL's increase in revenue.
The deal includes all customer-facing IT applications like billing, customer relationship management and data warehousing. In addition, Internet, e-mail and online collaborations are included in it.
On the infrastructure front, IBM will consolidate BTVL's data centre, IT helpdesk and enhance its disaster recovery centre capabilities, he said.
