Vodafone Essar - IT outsource

Vodafone Group Plc
10 December 2007


10 December 2007

         Vodafone Essar agrees to IT outsourcing deal with IBM in India

IBM to transform and manage Vodafone Essar's IT infrastructure and applications

Vodafone Essar is to outsource all its IT operations to IBM India in a deal
designed to boost efficiency and further enhance its service to customers.

The 5 year agreement aims to ensure scalable, flexible and resilient IT support
for the fast-paced roll out of new network infrastructure, keeping pace with the
rapid growth in Vodafone Essar's customer base. At the same time, the agreement
is expected to lead to the faster roll out of more varied services to customers,
while delivering greater cost efficiencies to Vodafone Essar.

Under the deal, IBM India will assume responsibility for the management of all
Vodafone Essar's IT operations with the exception of network service platforms,
spanning both hardware and software. The agreement will encompass the management
of IT services including the development and maintenance of key applications
such as billing and financial systems.

IBM India will also manage other internal IT services for Vodafone Essar such as
data centre operations, desktop, laptop and IT help desk support while
overseeing key areas such as 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 stringent 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. 'We
are confident this will deliver cost efficiency as well as an enhanced service
to our customers.'

Vivek Gupta, Director and Country Manager, Communication Sector IBM India /South
Asia 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.'

The deal builds on Vodafone's existing agreement to outsource to IBM its
application development and maintenance services in its operating companies in
Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, Greece,
and Italy. That agreement was designed to improve the quality of software
produced as well as deliver greater flexibility.

Vodafone completed the acquisition of Hutchison Essar in May 2007, rebranding
the company as Vodafone in September in one of the largest rebranding campaigns
undertaken in India.

For further information:

Vodafone Group


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About Vodafone Essar Limited

Vodafone Essar in India is a subsidiary of Vodafone Group Plc and commenced
operations in 1994 when its predecessor Hutchison Telecom acquired the cellular
licence for Mumbai. Vodafone Essar now has operations in 16 circles covering 86%
of India's mobile customer base, with over 37.1 million customers*.

Over the years, Vodafone Essar, under the Hutch brand, has been named the 'Most
Respected Telecom Company', the 'Best Mobile Service in the country' and the
'Most Creative and Most Effective Advertiser of the Year'.

Vodafone is the world's leading international mobile communications company. It
now has operations in 25 countries across 5 continents and 40 partner networks
with over 200 million customers worldwide.  Vodafone has partnered with the
Essar Group as its principal joint venture partner for the Indian market.

The Essar Group is a diversified business corporation with interests spanning
the manufacturing and service sectors like Steel, Energy, Power, Communications,
Shipping & Logistics and Construction. The Group has an asset base of over
Rs.400 billion (US$ 10 billion) and employs over 20,000 people.

*Figures from Cellular Operators Association of India, October 31, 2007

About IBM

For more information on IBM visit www.ibm.com



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