MIS 3534 – Prof. Min-Seok Pang

Week 10 – Strategic IT Outsourcing (II)

Online discussion questions – Mar 27

  • How can we define service levels of a tutor? (The service levels must be observable and verifiable.)
  • Why is there a risk to Bharti of losing innovation or competitiveness?
  • Why would it be difficult for the vendors to take over Bharti’s employees in network operations and IT?
  • Would Bharti’s employees in network operations and IT prefer working for Ericsson or IBM or prefer continuing to work for Bharti?
  • From “One Year Later” case, what are other changes in the proposed outsourcing contracts?

Online discussion questions – Mar 25

  • What constitutes “transaction costs” in capital expenditures?
  • What “opportunity costs” would Barti pay in case of over-investment in network capacity?
  • What would be the reasons for Bharti’s CEO or board of directors not to approve the new outsourcing deal?
  • What would be the reasons that Bharti’s vendors must sign the deal with Bharti? Are they afford to lose Bharti?

In-class discussion questions for Mar 27

We will discuss these questions on Fri, Mar 27. Do not pose comments on this.

  • What would be the reasons for Ericsson or IBM not to go into the new outsourcing deal?
  • What would be the reasons that they must sign the deal with Bharti?
  • According to the proposed contracts, Bharti’s engineers will become the vendors’ employees. Will this work?
  • What could go wrong in this long-term outsourcing relationship from the perspective of Bharti?
  • What could go wrong in this long-term outsourcing relationship from the perspective of Ericsson or IBM?
  • What does it mean by “You will become their slaves.” (p. 9)
  • What are the difference between “hard-line” (or “real-teeth”) and “soft-cooperation” in IT Adventures Ch 14?

In-class discussion questions for Mar 25

We will discuss these questions on Wed, Mar 25. Do not pose comments on this.

  • What are Barti Airtel’s core competencies? Or what should be core competencies for Bharti to compete and survive successfully?
  • Why did Mr. Gupta, the managing director of Bharti, say “Budgeting for capital expenditures was a nightmare”? (p. 1)
  • In a relationship between Bharti and Ericsson, What are the interests of Bharti? What are the interests of Ericsson?
  • In the proposed outsourcing contract with the network vendors, how will Bharti pay, for what?
  • With IBM, how will Bharti pay, for what?

In-class discussion questions for Mar 23

We will discuss these questions on Mon, Mar 23. Do not pose comments on this.

  • How would you write a contract between a tutor and a student?
  • What could go wrong in a relationship between the tutor and the student? What are the risks from the tutor’s perspective?
  • What are the risks from the student’s perspective?

Week 10 – Bharti Airtel Case – Brief Guidelines

  • What are Bharti Airtel’s business areas and key business functions?
  • What is the unique nature of the proposed outsourcing deal of Bharti?
  • Why does Mr. Gupta propose this deal?
  • What are the reactions to this deal from Bharti and the vendors?

Your brief does not need to cover “History and Background” and “Indian Market for Telecom,” but DO NOT skip to read them.