In a desperate move Vodafone India and Idea to form a “mahagathbandhan” against rival Jio, but IBM is the one who suffers.
In a series of action by Vodafone to facilitate a streamlined merger with Idea Cellular, Vodafone has announced that its outsourcing contract with IBM is going to cover Idea Cellular also. The merger is a 23 billion USD move and the biggest merger in Indian telecom history.
credit Voda and Idea
IBM is said to have contract with both Voda and Idea and this merger is going to cost them a client. The new IBM – Voda+Idea deal is estimated to be around 1000-1200 million USD. Current contract of IBM with Idea is for 800 to 900 million USD. The merged company might sign a contract with a lot less than they would have if they were separated. This indicates a huge loss for IBM.
Although Voda and Idea will going to combine resources but their client base is going to be same, so they might want to work something up for the lost IBM support.
After merger Vodafone and Idea will going to be biggest telecom operator in India. The entire merger is going to be finished in 2018.

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