Category: Communications

India’s outsourcing landscape is undergoing a significant transformation, with 81% of organisations planning to increase their outsourcing efforts over the next three to five years, according to Deloitte’s latest report. This shift is driven by the need for technological advancements, access to specialised expertise and cost efficiency.

India a scalable, sceure outsourcing hub
India is a preferred outsourcing destination due to its expanding services sector, reliable business environment and strong policy framework. India’s expertise in digital transformation, cybersecurity and vendor management has positioned it as a scalable and secure outsourcing hub.

The report indicates that strategic supplier collaborations have enabled organisations to achieve an average annual cost savings of 10-25% from their outsourced contracts. Organisations balancing strategic service providers and niche providers have achieved even higher savings of 15-35%. As outsourcing engagements become more complex, organisations are strengthening their vendor management strategies, with 45% of mature outsourcing firms now operating dedicated vendor management offices to enhance governance, supplier risk management and outsourcing effectiveness.

AI, Automation in outsourcing
Organisations are moving beyond traditional transactional and back-office services to higher-value, strategic services. AI and automation are playing an increasingly role in outsourcing agreements, with 98% of organisations depending on service providers for AI and gen AI capabilities.

To optimise these collaborations, companies are embedding AI-specific clauses in outsourcing contracts, ensuring better performance tracking, cost optimisation and risk mitigation. This shift has led to a rise in outcome-based contracts, now preferred by 36% of organisations over traditional full-time equivalent contracts.

The report highlights that better alignment with business strategy (28%) has overtaken cost savings as the primary driver for outsourcing. This transition is fuelled by advancements in AI, automation and digital transformation, which enable organisations to outsource complex functions such as product development, supplier evaluation and strategic brand management.

Evolving outsourcing models
Outsourcing models are evolving to include a blend of global business services centres, third-party providers and flexible talent solutions. According to the report, 55% of organisations use GBS centres for governance and oversight while relying on third-party providers for execution and efficiency optimisation.

Additionally, 35% of organisations have adopted the build-operate-transfer (BOT) model, which enables them to scale capabilities while maintaining long-term operational control. These models offer businesses greater agility, cost efficiency and integration between IT and business functions. NDTV Profit

The promoters of Bharti Enterprises will use the proceeds of the latest stake sale in Bharti Airtel to refinance loans taken to acquire a 24.5 per cent equity stake in British Telecom (BT) last year, multiple sources close to the development said.

Indian Continent Investment Limited (ICIL), a promoter-group entity of Bharti Airtel sold 0.84 per cent of its stake in the telecom operator. The 5.11 crore shares in Airtel were sold through a market transaction, for an aggregate amount of ₹8,485.11 crore, the telco said in an exchange filing.

Bharti Global, the international investment arm of Bharti Enterprises, had announced the acquisition in BT Group PLC in August last year. The move had made the Indian conglomerate the biggest shareholder in the UK’s second-largest telecom company both in terms of market value and subscriber count. The shares were purchased from billionaire Patrick Drahi’s Altice UK through a combination of cash and debt.

Sources said Tuesday’s block deal would help the Bharti group to reduce this debt. The move would allow group entities to deleverage quickly, which has been a stated focus, they pointed out.

The block deal saw Bharti Telecom Limited (BTL), the promoter of Airtel, anchor the trade by acquiring 1.20 crore shares, or 24 percent of ICIL’s sale, Airtel said in a stock exchange filing. It said this will help the overall book to be allocated only to key marquee long only names, both global and domestic. Tuesday’s deal saw the participation of US investment management company GQG Partners, alongside multinational financial services corporation Fidelity Investments, and financial advisory and asset management firm Lazard, people in the know said.

GQG Partners had earlier acquired a significant chunk in Airtel in March 2024, buying a 0.8 per cent stake directly from Singtel for $712.5 million. SBI Pension, SBI Life, and ICICI Prudential were among major domestic buyers.

The latest transaction also comes after Bharti Telecom acquired an additional 1.2 per cent stake in Airtel from ICIL in November last year. With the latest stake increase, BTL now holds nearly 40.5 per cent stake in Airtel. Sources said BTL is keen to pick up further stakes in Airtel going forward, when and if the opportunity comes.

Queries mailed to the company did not elicit a response. Shares of Airtel closed at ₹1,668 on Tuesday, down 0.43 per cent.

A day before, Bharti AXA Life Insurance had announced that funds managed by 360 ONE Asset will acquire a 15 per cent stake in the company. This investment will strengthen its growth trajectory and help it in expanding market share. “The investment will help accelerate the company’s plans to enhance its product offerings and expand its distribution network to meet the evolving needs of consumers”, the company had said. The transaction is subject to regulatory approvals. Business Standard

With connectivity being the digital backbone of the global economy, innovation in the telecoms sector has become imperative to support the world’s economic and societal challenges.

Within this aim, India is well on its way to becoming a global telecoms superpower through its own innovations. With 5G deployment expanding rapidly, for example, half of the population are expected to be on 5G by 2030.

But with such a strong telecoms foundation, the country is well positioned to further accelerate its telecoms growth by partnering with other global leaders in the space.

Collaboration is key
International collaboration will be central to fully benefiting and scaling from telecoms innovation globally. Through India’s journey to becoming that superpower, collaboration can open and boost opportunities for investment and innovation – and from the field of global candidates for potential partnership, the UK is one of the strongest.

Combined with India’s expertise, skills and resources to solve common sector challenges, a partnership could rapidly accelerate the journey for mutual benefit with the UK for many reasons.

Natural synergies
The two markets have natural synergies that can be exploited and advanced through closer collaboration, based around their current priorities. For both countries, these include Quantum computing, 5G and 6G technology development, Open RAN, edge computing, non-terrestrial networks, AI-enhanced network solutions and rural connectivity.

From a partnership perspective, the UK is the definitive R&D destination, with telecoms deeply embedded into the country’s DNA. As the PwC Global CEO Survey’s fourth most favoured investment destination, it has many regional clusters of expertise. Its strengths can also help leverage India’s capabilities with expertise in AI, cybersecurity, software, virtualisation, system integration, testing and semiconductors.

Home to world-beating talent and academia, the UK is also a hub for academic and early-stage research. This makes it an attractive choice for Indian telecoms partners seeking to further research and develop new propositions.

The country is widely known for its robust R&D capabilities in telecoms and there are clear opportunities around 6G. Collaborative partnerships for 6G research, sharing testbeds and other R&D projects could draw on a powerful combination of India’s commitment to advancing 6G and the UK’s next-gen networking investments.

Geographically, the UK also holds a strategic position as a stepping stone to the wider European market and the US, with strong connections to both regions. This is a top priority for many Indian firms looking for investment opportunities and an attractive testbed in which to commercialise R&D.

Current collaboration
Initiatives to support collaboration between India and the UK have already become firmly established, showing a clear appetite for partnership.

One important milestone in the UK and India’s continuing collaboration in telecoms research and innovation was reached in October, by the signing of an important MoU between Bharat 6G Alliance and the UK-India Future Networks Initiative (UKI-FNI), supported by UK Telecoms Innovation Network (UKTIN).

The collaboration signifies a crucial step towards harnessing the combined strength of Indian and UK expertise to drive innovation in the development of 6G technology. This partnership will not only address critical technological challenges but also create opportunities for deeper research collaboration, knowledge exchange, and shared vision for building a robust and sustainable 6G ecosystem.

This follows on from the strong progress made in July 2024, for example, with the announcement of the Technology and Security Initiative (TSI), a strategic framework designed to foster deeper collaboration between the two countries.

This initiative, focused on cutting-edge telecoms technologies and bolstering security, is set to unlock new opportunities for both nations, as they strive to be at the forefront of global telecoms advancements.

For India’s telecom companies, the TSI presents a lucrative opportunity to capitalise on the UK’s technological strengths. As telecoms continues to evolve, the TSI will play a key role in ensuring both the UK and India remain competitive in this critical sector. Techob Server

BSNL’s loss for the nine-month period ending December 2024 is lower by Rs 782 crore, due to changes in the method of amortisation on spectrum fees, according to the company’s auditors. This, along with a rise in revenues, resulted in a net loss of Rs 2,527 crore for the period, compared to Rs 4,522 crore in the same period last year.

The emphasis by BSNL’s auditors assumes significance as owing to certain accounting adjustments in depreciation & amortisation as well as in employee benefit expenses, the company reported a `262 crore profit for the October-December quarter. This was the first profit since 2007.

Besides emphasising on the impact of change in depreciation method, the company’s auditors have also flagged short-funding of Rs 536 crore by BSNL towards employee retirement benefits and leave encashment.

“We draw attention to Note No 4(iv) of the notes regarding change in method of amortisation of spectrum fee during the current quarter and due to which the loss of the company for nine months ended 31.12.2024 is decreased by Rs 781.98 crore,” BSNL auditors VK Jindal & Co said in its financial statements.

The company has changed the method of amortisation of spectrum fees (intangible asset) from straight line method (SLM) to the Unit Based Amortisation Method (UBAM) prospectively to provide more accurate reflection of cost allocation, matching with the consumption of economic benefits derived from the spectrum utilisation, it said.

The auditors added that the obligation of the company for employee retirement benefits is short-funded by Rs 413.59 crore towards gratuity and by Rs 122.35 crore towards leave encashment.

According to analysts, the accounting adjustments do not reflect a real turnaround and the company will have to focus on improving its core operations for a sustainable financial turnaround or long-term profitability.

In a statement on Tuesday, BSNL said that this is a sustained trend across all recent quarters and is to be understood through a business lens and not an accounting one.

“The improvement in financial performance of BSNL is a reflection of the sustained management and government efforts by way of improving its top line by increased business growth in its verticals and managing its bottom line costs in an efficient manner in line with accounting standards,” BSNL said, adding that the company is confident that the growth trajectory will continue in the next quarter and in times to come.

BSNL’s consolidated revenue from operations increased 2.7% QoQ and 9.3% YoY to Rs 4,973 crore in the October-December quarter. Additionally, its other income — including profit from the sale of assets — rose sharply by 91% QoQ and 38% YoY to Rs 707 crore, driven mainly by a Rs 421 crore write-back of excess provisions.

In its core business, BSNL’s consumer mobility revenue rose 14% QoQ and 11% YoY to Rs 2,060 crore, aided by tariff hikes by private players, which temporarily shifted some users to BSNL. Meanwhile, revenue from the enterprise segment declined 9% QoQ and 7% YoY to Rs 1,147 crore, while consumer fixed access revenue remained largely flat at Rs 1,766 crore.

Among other key things, the auditor said there are certain issues with regard to which it was unable to assess the impact on the statement of financial results. Some of the issues relate to reconciliation of account balances, dues with the government, GST balances, old pending balances, among others.

Notably, a significant 48% quarter-on-quarter (QoQ) and 44% year-on-year (YoY) drop in depreciation and amortisation expenses to Rs 814 crore was a key factor behind BSNL’s return to profitability in the October-December quarter. Financial Express

Tiger Brokers said on Tuesday it embedded DeepSeek’s model into its AI-powered chatbot, as brokerages and money managers race to capitalise on the Chinese start-up’s artificial intelligence breakthrough, and develop use cases for the financial industry.

The integration of the DeepSeek-R1 model into TigerGPT follows DeepSeek’s meteoric rise which stunned Silicon Valley and triggered a rally in Chinese tech shares on bets of an AI revolution sweeping across sectors from education to finance.

Tiger Brokers, an online broker backed by shareholders including Chinese electronics maker Xiaomi and renowned U.S. investor Jim Rogers, is the latest to embrace DeepSeek.

At least 20 Chinese brokers and fund managers, including Sinolink Securities, CICC Wealth Management and China Universal Asset Management, have already started to integrate DeepSeek models into their businesses, potentially changing the way they conduct research, manage risks, make investment decisions and interact with clients.

DeepSeek will be able to tap Tiger Brokers’ financial data and help customers analyse valuations, make trading decisions and “feel the beauty of investment,” said Wu Tianhua, Tiger Brokers’ founder and CEO.

“Its impact is real. It’s no longer a concept, or a marketing trick.”

UBS expects rapid AI adoption will boost financial IT spending by 24%, or 69 billion yuan ($9.49 billion), in five years, benefiting vendors including Hundsun Technologies Inc, Northking Information Technology Co and iSoftStone Information Technology (Group) Co.

“We expect the launch of DeepSeek R1 to drive faster GenAI adoption in the financial industry in 2025,” UBS analyst Haifeng Cao said, referring to DeepSeek’s recently released model that was developed at a fraction of the cost of Western rivals.

“We think the industry is likely to be more profoundly reshaped by GenAI than others, given its data-heavy and high labour intensive characteristics, and high mix of language-related tasks.”

An index tracking China’s Fintech companies has jumped 17% this month, flirting with record highs.

Tiger Brokers said the upgraded version of its investment assistant TigerGPT will initially be available for free to users in mainland China and Singapore.

“The integration of DeepSeek has enhanced TigerGPT’s logical reasoning abilities, enabling it to analyse market shifts more clearly and interpret investment opportunities more effectively,” CEO Wu said.

The chain of thoughts generated by the DeepSeek model “is often inspiring to even most seasoned traders.”

Sinolink Securities, which sees AI as a key engine of growth, said early this month it would use the DeepSeek model in a range of scenarios including information search, market analysis and industry research. In the future, the application will be expanded to core business areas such as risks management and investing.

CICC Wealth Management said its has integrated DeepSeek’s R1 model into its investment advisory services, potentially boosting information processing efficiency by 90%.

Zhongou Fund Management said the immediate challenge for the financial industry is to standardize internal database to feed AI models.

“AI has given financial companies a tool to make better use of troves of data” which was previously sitting idle, said Zhongou’s head of tech research Du Houliang.

“Now, many financial institutions, including us, are hurrying into meetings” to discuss how local adoption of DeepSeek’s models can empower internal management, marketing, and investing. Reuters

Anticipating disruption from Artificial Intelligence (AI) and automation, Karnataka has asked enterprises investing Rs 50 crore to create a minimum of 25 jobs in order to receive incentives under the government’s new industrial policy.

“Due to advancements in Artificial Intelligence as well as industry focus on automation to increase productivity, minimum employment thresholds have been rationalised,” the Industrial Policy 2025-30, which aims to create 20 lakh new jobs, states.

According to the policy document, the minimum investment for a large enterprise must be Rs 50 crore and it must create at least 25 jobs.

Similarly, a mega enterprise with a minimum investment of Rs 300 crore must have 150 jobs. An ultra mega enterprise with a minimum of Rs 1,000 crore should create 500 jobs. Ultra mega projects should also create additional six jobs for every Rs 50 crore.

Under the previous Industrial Policy 2020-25, large enterprises were asked to create 50 jobs for a minimum Rs 50 crore investment.

Meeting the new minimum employment thresholds is necessary for enterprises to avail capital expenditure subsidy or production-linked incentives.

“AI and automation…that’s the reality. AI will play a role everywhere…in the areas of medical equipment, smartphones, chipmaking and so on. Robots will replace human beings,” Industries Minister M B Patil told DH, adding that there were even robot masseuses. Patil, however, added that it was “too early” to speculate how AI would impact jobs.

At the recent Invest Karnataka summit, Google X cofounder Sebastian Thrun uged youngsters to prepare themselves for AI. “Approximately 60% of current jobs may disappear,” Thrun said at the summit, according to a statement. “But far more new jobs will emerge as a result of AI and other technologies.”

Thrun, who led the development of Google’s driverless car, also said that AI’s rise would lead to a shift in job types. “Those who adapt will find new career prospects in fields that are currently emerging,” he said.

The new Industrial Policy also offers incentives to enterprises that employ more women. Enterprises with 50%, 60% and 70% women in workforce will get incentive boosters of 7.5%, 10% and 15%, respectively.

“Such measures are expected to contribute significantly to the state’s social and economic objectives, making it a model for gender inclusiveness in industrial development,” the policy states. Deccan Herald

Bharti Telecom Limited has increased its stake in Bharti Airtel to approximately 40.47 per cent following a significant market transaction today. Indian Continent Investment Limited (ICIL), a promoter-group entity of Bharti Airtel, sold about 0.84 per cent shareholding (approximately 5.11 crore shares) for ₹8,485.11 crore.

The shares of Bharti Airtel Limited were trading at ₹1,662.50, down by ₹13.05 or 0.78 per cent on the NSE today at 11.05 am.

Bharti Telecom anchored the trade by acquiring approximately 1.20 crore shares, representing about 24 per cent of ICIL’s total sale. The company ensured that the remaining shares were allocated to “key marquee long only names, both global and domestic,” according to the filing.

This transaction follows Bharti Telecom’s earlier acquisition of an additional 1.2 per cent stake (approximately 7.31 crore shares) in Airtel from ICIL in November 2024. The company stated that these moves reinforce its “previously stated intent of strengthening its position as the principal vehicle to hold controlling stake in Airtel.”

Bharti Telecom remains “focused on gradually increasing its stake while maintaining a prudent leverage profile,” according to the announcement filed with the stock exchanges today.

The transaction continues the consolidation strategy that began with earlier announcements in August 2022 and December 2023, as Bharti Telecom progressively increases its controlling interest in one of India’s largest telecommunications companies. The Hindu BusinessLine

Chunghwa Telecom has activated a microwave backup system to maintain communications between Taiwan proper and Lienchiang County (Matsu) after a submarine cable linking the areas was disconnected, the Ministry of Digital Affairs said.

Communications between Taiwan and Matsu are mainly maintained through two submarine cables: Taima No. 2 and Taima No. 3.

Last month, communications were slightly disrupted after Taima No. 3 and part of Taima No. 2 were disconnected due to natural deterioration.

However, the nation’s largest telecom on Sunday informed the National Communications and Cyber Security Center that Taima No. 2, installed off New Taipei City, was completely disconnected, the ministry said, adding that the cause of the disconnection had yet to be determined.

The telecom has also notified the Coast Guard Administration and requested its assistance in its investigation into whether the submarine cable was deliberately disconnected, it said.

Chunghwa Telecom has been asked to activate its microwave backup system, through which voice and data communications between Taiwan and Matsu can be maintained, it said.

The microwave backup system can transmit data at 12.5 gigabits per second (Gbps), higher than the 9.5Gbps required during peak traffic on weekdays.

The telecom has also told the submarine cable laying ship that has arrived at the Port of Kaohsiung to repair the Taima No. 3 cable to start repairs on Taima No. 2 once the No. 3 line is operational, the ministry said.

Taima No. 3 and Taima No. 2 should be fixed by the end of this month and next month respectively if weather permits, the Chunghwa Telecom said.

Priority access to the microwave backup system would be given to government agencies, banks and hospitals to ensure that Matsu residents can perform daily tasks while submarine cables are being fixed, such as online transactions and cash withdrawals from automated teller machines, the ministry said.

The Ministry of Digital Affairs has subsidized Chunghwa Telecom to build a fourth submarine cable, which is expected to be completed in June next year. Taipei Times

Michael Burry rolled back on some of his investments in Chinese tech stocks just before DeepSeek’s breakthrough in artificial intelligence reignited a $1.3 trillion rally in the country’s shares.

The hedge fund manager, famous for his 2008 bet against the US housing market, trimmed his exposure in JD.com and Alibaba Group Holding Ltd. as of the end of last year, according to 13F regulatory filings on Friday.

Scion Asset Management, Burry’s investment firm, cut its holdings of JD.com by 40% to 300,000 shares during the fourth quarter. Its stake in Alibaba also decreased by 25% during the same period. Despite this reallocation, JD.com and Alibaba, together with Baidu Inc., were still a part of Scion’s top holdings.

The moves came amid a volatile stretch for Chinese stocks, when investors showed signs of wavering commitment after Beijing rolled out a stimulus blitz in late September. The government’s efforts sparked a frenetic rally into early October, but the momentum faded in the following months amid disappointment over the scale of fiscal stimulus, a weak economic outlook and a property crisis. Alibaba’s US-listed shares fell 20% in the fourth quarter, while JD.com declined 13%.

Scion didn’t cut its stake in all of its China investments. It started a new position on PDD Holdings Inc., a rival of Alibaba in China’s e-commerce sector, with 75,000 shares. The firm’s holdings in Baidu Inc. remained unchanged.

This investment was worth $40.9 million as of Dec. 31, representing 53% of Scion’s total equity holdings, data show. That was a reduction from about 65% in the previous three months.

The bearish options bought by Scion in the third quarter that would provide downside protection were no longer in place as of Dec. 31, according to the filing.

China’s market has been on a stronger footing to start the year, with some of equity benchmarks outperforming US and European peers. That’s in part because of China’s growing clout in artificial-intelligence, on the back of the success of DeepSeek’s AI model.

As a result, investors have been re-evaluating the nation’s beaten-down shares, although they’re also assessing the impact of US President Donald Trump’s move to slap 10% tariffs on China. Its equity market has added more than $1.3 trillion in total value in just the past month amid such reallocations. The MSCI China Index is on track to outperform its Indian counterpart for a third-straight month, the longest such streak in two years. Shares of Alibaba and JD.com have gained 47% and 19% respectively this year, while those of PDD and Baidu climbed 28% and 16%.

Burry has been one of the few prominent China stock bulls among hedge fund investors, along with Appaloosa Management’s David Tepper, even before Beijing’s major policy shift in September. The latter, a billionaire investor, ramped up his stake in China-related stocks and exchange-traded funds last quarter. Bloomberg

Etihad Salam Telecom Company, announced a partnership with EdgeNext at LEAP 2025. The collaboration aims to enhance the competitive telecommunications environment in Saudi Arabia, aligning with Saudi Vision 2023 and the objectives outlined by the Ministry of Communication and Information Technology (MCIT).

The partnership focuses on several key initiatives aimed at strengthening EdgeNext’s service delivery and network capabilities within the region. Starting with a cornerstone agreement involves EdgeNext collocating their servers in Etihad Salam Telecom Company’s state-of-the-art data centers, enjoying competitive colocation and special internet access . This setting provides EdgeNext with secure, reliable physical infrastructure, enabling them to leverage Etihad Salam Telecom Company’s facilities for optimum service performance and scalability.

Amjad Arab, Chief Wholesale and Partnerships Officer at Etihad Salam Telecom Company, said: “Our partnership with EdgeNext embodies our dedication to not just meeting, but exceeding the digital needs of our society. Through this collaboration, we are setting new benchmarks for connectivity and innovation in the realm of telecommunications and content localization.”

Further consolidating the partnership, EdgeNext will procure internet services directly from Etihad Salam Telecom Company, ensuring access to robust and high-speed internet connectivity essential for their operations. Additionally, Etihad Salam Telecom Company will facilitate EdgeNext’s peering connection with the Saudi Internet Exchange, significantly enhancing their network interconnectivity and access within the local digital ecosystem.

Dajiang Li, General Manager at EdgeNext said: “Joining forces with Etihad Salam Telecom Company accelerates our mission to deliver unparalleled content experiences to our customers. This is a testament to our commitment to leveraging leading-edge technology to enhance our service delivery and network efficiency.”

This collaboration underscores Etihad Salam Telecom Company’s role as a service provider and a crucial enabler in the telecommunications sector, contributing significantly to the broader objectives of Saudi Arabia’s digital transformation strategy. Zawya