Reliance Communications in talks with accenture for JV to run IT infrastructure
Telecom operator Reliance Communications (RCOM) is in talks with IT services and consulting giant Accenture to float a joint venture to manage and operate the Anil Dhirubhai Ambani Group’s IT infrastructure services and processes.
Sources said that the talks had been on for nearly two months for the joint venture. They said that the proposed JV would also have an exit clause giving Reliance Communications the opportunity to buy out Accenture in the future.
Reliance Communications is also said to be in talks with Hewlett Packard (HP), Germany’s T-Systems and French IT consulting giant Capgemini. HP declined to comment while Accenture was unreachable for comment. Sources added that the discussions with HP were in very early stages. An Reliance Communications spokesperson said that they did not comment on speculation.
Telecom operators such as Bharti Airtel and Idea Cellular have shed non-core functions such as IT and network management to multinational giants such as IBM and Nokia in order to focus on the main function of selling services.
HP and Accenture, both globally renowned names in outsourcing, have not bagged any contract in the booming Indian telecom space. IBM is servicing Bharti Airtel as well as Idea Cellular in contracts worth over $1.2 billion and $600-800 million, respectively.
While IT outsourcing refers to hiring an outside agency to provide IT services to a company, insourcing is the in-house management of technology. ADAG is well known for not outsourcing its call centres, IT or networks management requirements despite industry trends to the contrary.
Sources said that the concept of JV was mooted where Accenture could give its services and expertise to RCOM’s manpower. They added that would give a steady revenue stream to the company’s JV partner and bring latest technological expertise to the ADA group.
