Airtel Case Study

986 Words2 Pages

Contract Details and Management Contracts are exchange of promises or obligations between two or more organizations, is the key aspect of any encompassing critical business functions. In this case Bharthi Airtel and IBM, both these organisations agree on aspects like terms, pricing , service level agreements, human resources management, dispute resolution procedure , acceptance strategy and procedures ,Exit strategy, Non dis-closure agreements. As a procedure, Bharthi Airtel went through contract management process for finalizing contractual terms with IBM during sourcing lifecycle. Sourcing Life Cycle:  IBM and Bharti airtel sourcing lifecycle , explains about the process carried out during each phase.  Bharti Airtel came up with an sourcing strategy , of outsourcing all of its Non-core IT related systems to a single vendor.  The next step was to select an successful vendor from IT field. The vendor selection process of Airtel follows several steps as shown below. • Vendor Identification • Request for Information • Request for Quotation • Partner Evaluation • Negotiaions • Award of business  Airtel evaluates /prefers vendors on the basis of factors like cost, quality, Previous delivery records, Innovation/New Technology, Scalability, SLA.  IBM satisfied all the expectations/constraints of Airtel and proceeds with next phase called Contract Management. Contract Management: Pre-Contract Phase: Before entering into Contract management, Airtel had its own principles which defined its approach towards the future outsourcing deal with IBM. Principles: 1. Agreement should be an well planned and thought out arrangement. 2. Planning and Frequent reviews to be on track. 3. Transition management adherence. 4. Win-... ... middle of paper ... ...supplied and payment made and/or at the end of a pre-agreed period of time. This situation, however, does not remove the need to develop a contract exit strategy as part of the process of risk identification and reduction, and reinforces the importance of establishing the foundations of sound contract management.It is important to identify the circumstances under which early contract exit may be required or indeed desired.The following is merely a list of examples and is certainly not an exhaustive list: major default by your organisation;this may include contractual breaches or changed circumstances - market,political ,economic, funding resulting in major procurement need changes,financial resulting in non-payment of supplier’s invoices • major default by the supplier; this may include breaches, technical inability,capacity, and so on • frustration of the contract.

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