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Business & Marketing
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English (U.S.)
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Topic:

Strategic Outsourcing at Bharti Airtel Limited

Essay Instructions:

Case 4: Strategic Outsourcing at Bharti Airtel Limited

The case indicates that Bharti Airtel is growing very quickly and that the company is quite profitable. So, why is Bharti considering an outsourcing arrangement with its suppliers? Why would Bharti’s suppliers consider an outsourcing arrangement with a local Indian company, such as Bharti?

What are Bharti’s core competencies? Will Bharti be giving up these competencies in an outsourcing arrangement?

The proposed deal requires the suppliers to make capital investments on behalf of Bharti in return for a revenue share. Is this arrangement good for both Bharti and the suppliers? Why or why not?

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Case Write-Up
Outsourcing is a business approach that helps to improve organizational performance, capitalize on resources and broaden marketing activities. In the case study of Bharti Airtel Limited, the entity is considering outsourcing arrangements with suppliers for potential benefits. For instance, the company will utilize its assets and aptitude for product development, valuing, advertising, and administration (Lok et al. 4). Bharti will access current workflow technologies without spending much, the cost of services and production will be low, and time, effort, and infrastructure will be saved.
On the other hand, Bharti’s suppliers can consider outsourcing arrangements with a local company to maintain continuous improvements in the supply chain. The benefit of supplier benchmarking is critical to generate growth ideas, pricing strategies for specific products or services, and retaining long-term relationships with clients (Chagar 55). Therefore, outsourcing deals form the basis of legal relationships with clients and a local Indian company.
Bharti Airtel Limited core competencies revolve around its operational network and investing in innovations. They include accomplishing market predominance in mobile services, expanding scope, being cost-efficient and creat...
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