Vodafone Idea Limited (Vi) has reportedly awarded IBM and Kyndryl a multi-year, bifurcated IT outsourcing deal after renegotiating terms. The new agreement reduces Vi’s dependence on IBM, which will now focus on key areas such as application development and management. Meanwhile, Kyndryl has been entrusted with managing infrastructure-related processes, including servers, storage, and firewalls. To optimise costs, Vi has opted to engage multiple vendors instead of renewing its full agreement with IBM, ensuring specialised expertise and better cost efficiency. However, the deal’s size remains undisclosed.
In a bid to further cut operating expenditure and improve efficiency, Vi has brought digital development and network-managed services in-house, leveraging internal talent to save on both capital and operating expenses. The company is also investing in training employees in cloud, Internet Protocol (IP)/ Multiprotocol Label Switching (MPLS), artificial intelligence (AI) tools, and machine learning.
These initiatives align with Vi’s three-year capex plan of $6.6 billion, aimed at expanding 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets, and scaling capacity to meet growing data demands.
