IBM Add-on Business from Idea

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IBM announced that it will integrate the end-to-end information technology (IT) operations of Idea Cellular.

IBM announced that it will integrate the end-to-end information technology (IT) operations of Idea Cellular, a telecom operator, in two service areas of Punjab and Karnataka. Through the acquisition of Spice Communications, Idea Cellular has recently launched its services in the two circles with a subscriber base of approximately four million. The scope of the eight-year agreement includes integration, transition and migration of existing Spice applications, hardware, packages and products to the Idea Transformed Applications platform. As part of the deal, IBM will manage all IT operations and services for Idea’s business in Punjab and Karnataka. In addition, IBM will migrate the IT help desk services to its state-of-the-art centralized helpdesk in Pune. The complete integration, transition and migration of the IT operations and business processes of Spice Communications with Idea is expected to be completed within 27 months and  is valued at approx US$19.2 mil

lion (Rs 86 crores). After completing the transition, IBM will manage IT operations in the two service areas, under the existing outsourcing services contract with Idea as per revenue sharing model.  “IBM has showcased in-depth knowledge and expertise in managing and augmenting Idea’s IT infrastructure and business processes,” said Prakash Paranjape, Chief Information Officer, Idea Cellular.  “Our experience with IBM over the last two years gives us confidence that the two new service areas will be integrated seamlessly into the Idea network. “  The deal builds on the existing 10-year business transformation pact that IBM had signed with Idea Cellular in March 2007 to integrate, innovate and transform Idea's business processes and IT infrastructure. The pact is designed on an innovative risk-reward sharing model that is based on a shared revenue arrangement. It covered all of Idea's existing operations, expansion into new circles and potential new add

itions. In June 2007, IBM signed another 10-year contract to deploy, integrate, innovate and transform Idea’s Interactive Voice Response Self-Service project. Commenting on the extended partnership, Ashish Kumar, Vice President, Client Services, IBM India / SA said, “This agreement further strengthens our partnership with Idea Cellular. The integration of Spice Communication into Idea Cellular’s IT infrastructure will help showcase some of the best practices and deep domain knowledge within IBM. This will allow Idea to provide its stakeholders with greater value, scalability and service delivery innovation.  We are delighted to extend this partnership with Idea Cellular.”