Answer 1:

Answer 2:
According to my understanding for the case, I think Bharti Airtel should enter
the outsourcing agreement. To expand and grow further, it needs to
outsource which will help them to use the company’s resources efficiently in
achieving value-added service, product innovation, etc. outsourcing will also
help in cost reductions which will thus reduce their maintenance leading to
increase in the cash flow. As most of the work is being outsourced to
developed companies, it will lead to efficiency which will help to get faster
results because of using appropriate resources, technology and expertise. To
grow its capacity to remote locations Bharti Airtel needs to high
infrastructure which will require capital. Thus, outsourcing can help Bharti
Airtel achieve their goals. Moreover, this will also help them to open up their
capital to various different task.

Following are the advantages and disadvantages regarding the outsource

agreement:

Advantages:
1. Increase in the Cash Flow: as now most of the work and responsibilities
is in vendor’s hand this will reduce the Airtel maintenance cost, which
is now transferred to the vendors.
2. Human Resources: Human resources are a scarce resource. So, with
the help of outsourcing, Airtel doesn’t have to worry about the peoples.
As now the vendors will bring their human resources which will be
experts at their work.
3. Adaptation of New Foreign Technology: As Airtel’s vendors are foreign
companies. Thus, they will bring new technology to gain efficiency in
the work. While in 2003, when there was just 2G, but with the help to
these vendors, they might introduce 3G in the market.

Disadvantages:
1. Confidentiality and Threat of Security: the vendors which are working
with us, they may have been still working with other companies too, so
this might give reason and increase in chances of information leakage.
2. Increase in Dependency: As most of the work is being outsourced in
terms of its operations. Airtel may not have an upper hand in the
management which will increase the chances of dependency over its
vendors.

Answer 3:
There should be number of things which are to be discussed regarding the
contract between Bharti Airtel and its suppliers – IBM, Nokia, Ericsson, and
Siemens:
1. A profit-sharing arrangement with the suppliers would be agreed to
enhance the partnership between both the companies. For all I know
both the parties should reduce their share in the overall profits.
2. As suppliers are a well-established companies and people are also
willing to work for these foreign companies, the selection and the
recruitment process of new employees should be handled by the
vendors.
3. As of my knowledge and understanding all the suppliers should co-
operate with each other by coming to a common ground and ensuring
smooth functioning and management in the arrangement.
4. There should be continuous monitoring and co-ordination with the all
the supplies on daily basis which will ensure the management with the
result on daily basis.
5. As in this case, there is more than one supplier, I think all of them
should work in co-ordination which will ensure smooth operation and
management in the company without any coalition among the
suppliers.
6. As per my knowledge there should be proper guideline and distribution
of the resources which can be easily monitored and managed. By
doing so, the company will get to know how much resources are used
for each and every activity.
7. Each and every activity should remain secure and the company should
make sure that there is no leakage of information.

The most important thing which should be taken care of is decision making.
As Bharti Airtel is working with many multinational organizations, it needs to
make sure that the decision making is in their hand only and not some other
companies. If the decision making is changed then there might be
complication with other suppliers which would disturb the functioning,
operation and management process. Moreover, losing the decision making
the company would risk their future growth and their primary business
completely. They might lose their ownership, copyrights, assets, resources,
patents, etc.