Vodafone Idea (Vi) has signed a managed services agreement with IBM to modernize its IT operations, streamline business processes, and enhance customer experience through artificial intelligence (AI) and automation.
The collaboration focuses on establishing an AI Innovation Hub, where Vi and IBM Consulting experts will co-develop AI-driven automation tools, accelerators, and digital solutions. The initiative is designed to support a unified DevOps execution model, enabling faster go-to-market cycles, improved service reliability, and agile IT operations.
Through the managed services deal, Vi will leverage IBM’s global partner ecosystem, deep telecom expertise, and AI-driven DevOps practices to strengthen its digital resilience while tapping new revenue opportunities in the era of 5G and rapid digital adoption in India.
“Our collaboration with IBM marks a pivotal milestone in Vi’s digital journey. The AI Innovation Hub will play a critical role in modernizing our operations and expediting go-to-market execution of business initiatives through faster software development cycles,” said Jagbir Singh, Chief Technology Officer, Vodafone Idea.
IBM executives said the partnership reinforces a 17-year relationship between the two companies, with managed services now playing a central role in Vi’s AI-led transformation strategy.
IBM has reported revenue of $17 billion in Q2-2025 ended June 30, 2025, marking an 8 percent year-over-year increase. IBM’s revenue was $7.387 billion (up 10 percent) from software, $5.314 billion (up 3 percent) from Consulting, and $4.142 billion (up 14 percent) from Infrastructure.
“Vi’s AI Innovation Hub is a testament to the power of co-creation, where IBM can provide best practices and managed services expertise to build a future-ready digital foundation powered by AI and automation,” said Juhi McClelland, Managing Partner, IBM Consulting, IBM Asia Pacific.
The Vodafone Idea–IBM managed services deal positions Vi to accelerate AI adoption across its IT and telecom operations, optimize costs, and deliver superior customer experiences. By embedding AI into its digital backbone, Vi is building a future-ready IT infrastructure aligned with India’s growing 5G ecosystem.
Recent IT outsourcing deals
In March 2025, Vi signed a split IT outsourcing deal with IBM and Kyndryl, valued at approximately $500–$600 million. IBM handles application development and management, while Kyndryl oversees infrastructure such as servers, storage, and firewalls, Moneycontrol reports.
Earlier, in April 2024, Vi had renewed its IT infrastructure outsourcing deal with IBM for around $1 billion over five years, Economic Times reports.
Baburajan Kizhakedath
