| IBM India Private Limited | |
| Slogan | "On Demand Business" |
|---|---|
| Type | Private |
| Founded | 1992 (re-entry, after an exit in the decade of 1970 |
| Headquarters | Bangalore, India |
| Key people | Shanker Annaswamy, Managing Director Mats Agervi, Vice President, Delivery, IBM India Amitabh Ray, Director, Global Delivery India |
| Industry | Computer hardware Consulting IT Services |
| Products | See complete products listing |
| Contact | {{{contact}}} |
| Reference | {{{reference}}} |
IBM India, significantly, is now the fourth largest employer in the Indian IT industry - only behind TCS, Infosys and Wipro. India has the second largest workforce for IBM now, second only to its home - the IBM US. From about 43,000 employees in its rolls now, it is expected to employ more than 100,000 people by the end of 2010. IBM has facilities in all the major cities of India - Bangalore, Delhi, Kolkata, Chennai, Pune, Gurgaon and Hyderabad. Although IBM India fits in its worldwide business plans primarily as a cost saving delivery center, it also has some of its research, consulting and other centers of excellence based out of India.
Growth Prospects
IBM, in a historical analyst meet held at Bangalore on June 6, 2006 stated that IBM's India plans are for the long term & committed to invest $6 billion in the next few years in India.
IBM world-wide expects its revenues to be around $120 billion by 2010, of which nearly $86 billion (68%) would come from IBM Global Services alone, with an estimate of about 200,000 employees. IBM India would account for 90,000 of these. Roughly translated, IBM's Indian employees would generate $35 billion of IBM's revenues in 2010.[1]
IBM Global Services (now split to Business Services & Technical Services) was called the "jewel in the IBM crown" by the Aberdeen group in 2003. For world-wide IBM, this is the group that contributes to more than half its global revenues ($54 billion in 2005) presently and growing at a healthy rate (8% in 2005). With half of global service employees to be located in India, IBM India's importance for the global corporation can be easily fathomed.
IBM's re-organization
In 2005, [2] over the leadership at the Enterprise Business Services unit of IBM worldwide and heralded changes that would have long running implications and would lead to the explosive growth of IBM in India.
In an investor meet in 2006, she identified five areas that would transform IBM and bring 'profitable growth'. In order of importance, they are Business Transformation Outsourcing, Application Management Services, Business Solutions, Small & Medium Business & Innovation. In each one of these areas, IBM India figures prominently and employee numbers have grown multi-fold in the last two years.
IBM in India is not just a global delivery organization intending to tap into the vastly skilled & low cost manpower availability, it is also a big player in the domestic IT market. IBM India's domestic revenues grew at 60% in 2005-06 making it one of the highest growth areas in the entire IBM portfolio of geographies & businesses. IBM India is also the biggest domestic IT player in the country, replacing HCL Technologies.Its worthwhile to mention that Bharti Airtel, India's largest private telecom company has chosen IBM as its partner for outsourcing its entire network & IT backbone - a deal worth about $750 million.
History
Pre-liberalization Story
IBM's India connection started in 1968. There was only one liaison office in Delhi. The business was primarily to sell mainframes to universities & big Indian companies and to support and service them. It was asked to dilute the stake or leave the country in 1978, because of Janata Party's nationalistic policies that period.
However IBM continued to sell its products to the Indian customers through its Australian and Singaporean offices, although with limited or no service and support.
Post-liberalization Story
India was liberalized in 1991, relaxing FDI norms. IBM re-entered the Indian shores in 1992 with a Tata joint-venture, named Tata IBM. Its business interest in India was still focused on product sales.
In 1997, IBM Global Services was set-up. India Research Lab was set-up in the IIT Delhi campus in 1998. In 1999, IBM bought out the Tata's stake in the company and IBM India becomes a fully owned subsidiary of IBM Corporation.
Current Activities
IBM India has now grown to an extent where it poses a stiff challenge to homegrown Software companies of India in IT global delivery and manpower attraction/retention. It now operates the following business lines from India which contributes to world-wide IBM in a global delivery framework : IBM Software Labs (ISL), India Research Lab (IRL), Linux Technology center, Global Business Solutions (GBS), Global Technical Solutions (GTS), Global Service Delivery Center (GSDC), Global Business Solutions Center (GBSC), Strategic Outsourcing (SO) and Business Transformation Outsourcing (BTO).
IBM India also sells its products and services for the Indian market and is the number one in Server sales and Storage Solutions. IBM India also has aggressive plans to target Small & Medium Businesses (SMBs) market.
IBM's India operation is key part of the Chairman Sam Palmisano's vision of a Globally Integrated company. NYTimes (subscribers)
Business Lines in IBM India
Global Business Solutions
This division, alongwith Global Technical Solutions (which was together called IBM Global Services earlier) has the largest employee head-count and operates in a global delivery framework. Although it's impossible to quantify the value-contribution from this unit, since IBM GBS India operates in the cost recovery mode, it is considered to contribute well in excess of $1 Billion an annum.
IBM India's package implementation & maintenance practice - with its SAP, Oracle, Siebel, Peoplesoft, J D Edwards & Clarify practitioners is the biggest amongst all Indian IT companies.
This entity is organized as a consulting company, with divisions mirroring the functional expertise within, for instance Finance Management Solutions (FMS), Customer Relationship Management (CRM), Supply Chain Management (SCM) and so forth.
Application consultants from the fledgling SAP practice of IBM India are one of the most mobile of its workforce - frequently globe-trotting to other IBM Geographies and benefitting from the nearly 3 decade old IBM & SAP alliance.
Global Technical Solutions
It is considered that legacy systems, including mini and mainframe technologies (DB2, CICS, AS400 and related technologies) were amongst the first to be migrated to off-shore countries (Globally Delivered). So, naturally, IBM India also boasts of a large number of people who started their career with legacy systems. A large number of employees with custom technology skills like DB2, Java, Lotus Notes and other related technologies work in this division.
IBM Global Account (IGA) is a division that caters to the IT Infrastructure and Services requirements of the IBM world-wide corporation itself.
India Software Labs
This is the software product division in IBM. IBM India's software group has the nation's brightest computer science and electronics engineers work on the development of five popular IBM software brands - Lotus Notes, Tivoli, Rational, DB2 and Websphere products. Development work is also done here for the IBM's AIX operating system and other software in its portfolio. Also, it's the only IBM lab in the world where (OS/2) work still goes on.
Linux Technology Center
IBM invests a billion dollars each year in its Linux efforts world-wide. This center in India contributes in R&D and development of Linux related IBM products.
Business Transformation Outsourcing
With the acquisition of Daksh in 2004, IBM now also boasts of a formidable BPO service portfolio. Associates and analysts work out of the EGL, Bangalore office in out-sourced business processes of IBM clients.
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