Outsourcing Case Study: Airtel's Outsourcing

Airtel is a small company (initially) and outsourcing helped the company to expand. As it was a start-up company, it doesn’t have the resources to perform all the activities in house and also doesn’t have expertise in all required fields, so outsourcing has helped Airtel expand. Due to outsourcing, they can concentrate on their core competencies and outsource the other so that they would not compromise on their weaknesses.

The advantages Airtel had due to out sourcing are, it reduces the overall costs including labour costs, lowers operational costs and would have opportunity to share best practices of other companies and can help improve the efficiency of their overall operations.

There are few disadvantages:

a) the company would not have

In its initial years, Airtel doesn’t have the capabilities and also the infrastructure to perform all operations in house. Currently, Airtel is an established player and it now needs to move away from the telecom marketing company and should have many of its core operations in house to reduce the costs and also to have more control over their operations, In early 2000’s the IT infrastructure was not affordable and to recruit IT people was costly but now the Airtel can afford and also recruiting IT professionals is not costly. So Airtel needs to increase its human resource and bring IT in house to reduce the costs as other

Airtel needs to have differentiation in service. Airtel has a large base and now it needs to concentrate on increasing consumer loyalty by giving loyalty points and offers to the loyal customers and also should go for mass customization. The plans and schemes should be customized based on the usage and this would help in regaining customers as for them to be eligible for the customization plan they need to stay with a particular network for certain period of