IBM, TechM and Spanco bag Bharti Zain BPO deal

IBM, Tech Mahindra and Spanco have bagged the Bharti Zain business process outsourcing (BPO) deal. Spread across 16 African countries, the BPO contract is pegged at $500 million (about Rs 2,215 crore). The agreement is expected to be finalised soon.

“Our partnership with IBM, Tech Mahindra and Spanco is aimed at redefining and providing a seamless customer experience in all 16 countries. The BPO model has significant benefits for our customers, the countries in which we operate and their economies. Partnering with world class organisations on such a massive scale will galvanise the BPO sector in Africa and be a catalyst for growth in the sector,” said Manoj Kohli, chief executive officer (international) and joint managing director, Bharti Airtel.

Under the five-year BPO deal, Bharti Zain will outsource core customer service functions like call centres and back office.

“The deal is for five years, but it can be extended for another 10 years. Tech Mahindra would get around $200-250 million over five years, but it has the potential to increase these revenues to $500 million over the 10-year period,” said a source close to the development.

A spokesperson at Spanco said they would operate in six countries — Nigeria, Kenya, Tanzania, Niger, Chad and Burkina Faso.

Tech Mahindra will cover Zambia, Ghana, Malawi, Congo DRC, Congo B and Gabon, according to a company spokesperson. It will also take over Bharti Airtel’s existing in-house ‘contact centre’ operations in Africa.