Under the five-year agreement, IBM India will assume responsibility for the management of all Vodafone Essar's IT operations with the exception of network service platforms.

IBM India will also manage internal IT services for Vodafone Essar like data centre operations and the help desk while supporting key areas like security and change programmes.

Vodafone Essar will continue to retain full strategic control of its IT requirements. To ensure greater flexibility for Vodafone Essar, the deal has been constructed on a risk-sharing basis, under the control of service level agreements.

?This agreement further demonstrates our continued focus on scalability and cost control - key criteria for success in the Indian mobile market. In IBM we have chosen a global partner committed to the industry and with a proven track record in the region,? said Asim Ghosh, managing director, Vodafone Essar.

Vivek Gupta, director and country manager, communication sector, IBM India, said: ?India is home to the fastest growing telecom market in Asia, and with that comes significant challenges including effectively managing growth and improving profitability. IBM is delighted to share its extensive telecommunications industry insight and global IT outsourcing experience to help Vodafone Essar continue to deliver quality services to its rapidly growing customer base.?