Bharti Airtel Limited is an Indian multinational telecommunications corporation that was founded in 1995 by Sunil Mittal. At the time of the company’s establishment, Mittal’s starting capital was $900 (Palepu & Bijlani, 2012). The company mainly provides services in the field of mobile communications, broadband and telephone services, and long distance, group data, and enterprise communications. As one of its business tools, Bharti uses strategic outsourcing to increase performance and improve the company’s activity on the market. The role of strategic outsourcing applied in Bharti Airtel Limited can be defined and analysed through the lens of the benefits and drawbacks associated with this business tool in the Bharti case.
First, it allows the company to access new workflow technologies without making significant investments. In addition, the company is able to exceed the limits of traditional HR methods and approaches and apply a wider range of professional skills and resources. Moreover, processes improved by these measures allow increasing customer satisfaction. Sophisticated technology use and professionally trained workforce also allow the company to gain advantage in comparison to its competitors on the market. Finally, strategic outsourcing plays an important role in reducing the company’s costs of production and services.
However, problems also arise in relation to managing outsourced resources in Bharti Airtel Limited. Since the managerial system of the company is based on the family-running business principle, its strategic approaches may not be relevant to various measures of outsource application. Differences in workplace communication styles can prevent the company form gaining profit and advantages from strategic outsourcing. This fact limits the role and capacity of this business tool, and to solve the problem, the company needs to reconsider its managerial structure.
Reference
Palepu, K., & Bijlani, T. (2012). Bharti Airtel in Africa. Harvard Business School, 1-36. Web.