| IBM India Private Limited |
| Type |
Private |
| Founded |
1992 (re-entry, after an exit in the 1970s) |
| Headquarters |
|
| Key people |
Shanker Annaswamy, Country Manager & South Asia Head
Rajesh Nambiar, Vice President & GM, Global Delivery, IBM India
Dave Seybold, Vice President and Partner Global Delivery – Consulting & Application Services
IBM Global Business Services India
|
| Products |
See complete products listing |
| Slogan |
"On Demand Business" |
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[1], second only to its home - the IBM US. From about 53,000
employees in its rolls now,. 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.[2]
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, Ginni Rometty[3] took 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. It's 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 India was established in the late 1930s, as a wholly owned subsidiary of IBM World Trade Corporation. The business
operated successfully until the mid-1970s, when India’s Foreign Exchange Regulation Act (FERA) required foreign owned companies
to reduce their equity ownership to (in IBM’s case) 26%. IBM was unwilling to take that course of action and in 1978, the company
ceased its operations but still continued to conduct business in India as an off-shore entity only, through a small Liaison
Office.
In making the change to its new mode of operation, a number of restructuring steps were taken: - All installed equipment
(equipment in India was all leased by the month - a GOI requirement) was 'sold' to the existing users for a nominal amount of
less than $10 - The (profitable) Service Bureaus were given to the employees who were employed in them at that time. A management
structure was established, based upon several of the most senior Indian managers, who collectively became the majority
shareholders in the new company, which they named IDM (International Data Management) - The equipment service business was
transferred as a single total entity to the GOI, on the understanding that they would continue to offer maintenance service to
all existing users. IBM undertook to provide spare parts for installed equipment for at least a further 5 years - Employees who
were working in other countries at that time were offered positions in those countries, if the immigration laws allowed. Most
accepted and a number went on to achieve promotions to senior positions in those countries and around the world - The employment
of all other employees was terminated, with what were generally considered to be generous redundancy terms
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 Information Systems Ltd. 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 Tata's stake in the company and
IBM India became 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 Technology
Services (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 (Citation Required). IBM
India also has aggressive plans to target the 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 Services
This division, along with Global Technology Services (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.
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.
Country Managers
The head of IBM India is called a country manager. These people have headed IBM India during its history in the country.
- 1966(?) - 1976 - Alec Taylor
- 1976 - 1978 - T Brian Finn
- 1992 till 1994 - Michael Klein
- 1994 till 1996 - John R. Whiting
- 1996 till 1998 - Ravi Marwaha, currently VP, World-wide Sales, Personal Computing
- 1998 till 2000 - Ranjit Limaye
- 2001 till 2003 - Abraham Thomas, currently in IBM Singapore
- From 2003 - Shanker Annaswamy, current country-head.
References
External links
|
International Business Machines Corporation |
| Corporate
Directors |
Cathleen Black,
Kenneth I. Chenault, Juergen Dormann, Michael L. Eskew, Shirley Ann Jackson,
Minoru Makihara, Lucio A. Noto, James W. Owens, Samuel J. Palmisano, Joan E. Spero, Sidney Taurel, Lorenzo H. Zambrano |
| Hardware Products |
Cell
microprocessor · Mainframe · PC · POWER |
| Software Brands |
Information Management ·
Lotus · Rational · Tivoli · WebSphere |
| Consulting and IT Services |
IBM
Global Services |
| See also |
IBM India · IBM PC compatible · IBM Public License · History of IBM · List of IBM acquisitions and
spinoffs · List of IBM
products |
Annual Revenue:  $91.4 billion
USD (FY 2006) · Employees: 329,373 (2005) · Stock
Symbol: NYSE: IBM · Website: www.ibm.com |
This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)
