Last month IBM India has fired a dozen
of Top to mid level executives with other Human resources who accused of the
fraud. The fraud was the outsourcing contract of about $2 billion outsourcing
with Bharti Airtel and a subordinated company which was founded by Former
IBM-ers. The agreement signed back in 2004 which stated to manage the telecom
Networks, desktop application and software’s at Airtel. It will cost about $300
million annually and $2 billion for all IBM India. As of now Airtel has to
renew this contract and share of IBM has diluted down to $100 million yearly. So
the whole matter is little bit messed up and executives from both side created
a fraud type situation.
TechCrunch published “IBM and Airtel are now negotiating terms of
a contract that could be reduced to around 3-4 years with total value of less
than $400 million, The Bharti
contract renewal has already undergone over a dozen iterations; it was supposed
to get signed and announced weeks ago. Ongoing investigations into
‘unprofessional conduct’ of some IBM-ers and customer staff has made it a
contract everybody wants to sign, but with conditions that reflect lack of
trust, The specific
charge being leveled internally is called the business conduct guideline
violation.At least a
quarter of all the work being outsourced to IBM was being subcontracted to
Mara-ISON, and the motives look questionable,”
Several Companies like Yahoo, Google, and
Facebook are defining the rules and regulations for their employees to maintain
transparency with executives and company so that situation like this cannot be
created. IBM already suffers from Low revenue in India that’s why they fired 2500
employee last year. So as contract bounds IBM not to take any independent
subcontract or purchase any hardware and software solution but board of
directors from both side will decide what product to acquire and how.
No comments:
Post a Comment