NEW DELHI: Vodafone India has begun an exercise to extend its outsourcing contract with IBM to cover Idea Cellular as well, besides kicking off work to streamline and standardise all its own IT processes ahead of the proposed $23-billion merger between the phone companies.The move is aimed at making things easier for the proposed union and also means Idea’s existing IBM contract– which runs until 2020–won’t get renewed separately, people familiar with the matter said. “That's not only for IBM but for all the IT vendors. Vodafone India renewed its outsourcing deal – pegged at around $800 million – with IBM for five years last August. Idea had initially signed a 10-year contract with IBM in 2007, but in 2012 extended it until 2020 in a deal worth $800-900 million.The reworked contract may be 40-50% lower than the previous combined deal value, the first person said. IBM declined to comment.

Source: Economic Times September 03, 2017 18:11 UTC