IBM India

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IBM India Private Limited

Type

Subsidiary

Founded

1992, (re-entry, after an exit in the 1970s)

Headquarters Bangalore, Karnataka, India

Key people

Shanker Annaswamy, Country Manager & South Asia Head Rajesh Nambiar, Vice President & GM, Global Delivery, IBM India

Products

See complete products listing

Parent

IBM

Website

Ibm.com/in

IBM India is the Indian subsidiary of IBM. It has facilities in Bangalore, Delhi, Kolkata, Mumbai, Chennai, Pune, Gurgaon, Noida, Chandigarh andHyderabad. Between 2003 and 2007, IBM's head count in India has grown by almost 1000%, from 9,000 in 2003 [1] to nearly 74,000 in 2007.[2] Since 2006, IBM has been the multinational with the largest number of employees in India.[3] . More than one quarter of IBM's employees are from India and is expected to grow. It is expected that in 2011 , IBM will recruit approximately 24,000 more employees taking it to a total of nearly 154,000 employees from India.
Contents
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1 Growth and future initiatives 2 History

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2.1 Pre-liberalization Story 2.2 Post-liberalization story 2.3 Current activities

3 Business lines

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3.1 Global Business Services 3.2 Linux Technology Center 3.3 Business Transformation Outsourcing 3.4 Business Analytics Center of Competency

4 Country Managers 5 References 6 External links

[edit]Growth

and future initiatives

IBM, in an analyst meeting 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 three years in India, triple the amount invested in the three years preceding the meeting.[3] IBM worldwide 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.[4] 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 worldwide 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[5] 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.

Year Employees 2002 2003 2004 2005 2006 2007 2008 2009 2010 5000 9,000 23,010 38,500 53,000 74,000 94,000 1,12,900 1,31,000

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 chose IBM as its strategic partner for outsourcing its entire network & IT backbone a deal worth about $750 million initially, and currently worth over $2 billion.

[edit]History [edit]Pre-liberalization

Story

IBM commenced business in India in the 1930s and set up manufacturing there in 1951. The business operated successfully until the mid-1970s, when Indias Foreign Exchange Regulation Act (FERA) required foreign owned companies to reduce their equity ownership to (in IBMs 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

[edit]Post-liberalization

story

India was liberalized in 1991, relaxing FDI norms. IBM re-entered the Indian shores in 1992 with a Tata jointventure, 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.

[edit]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 worldwide IBM in a global delivery framework: India Software Labs (ISL), India Research Lab (IRL), Linux Technology Center, Global Business Services(GBS), Global Technology Services (GTS), ITD-GD (Information Technology Delivery - Global Delivery) (Previously called Global Service Delivery Center (GSDC)), Global Business Solutions Center (GBSC), Sales & Distribution (S&D), Integrated Technology Services (ITS).

[edit]Business [edit]Global

lines

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 per annum. IBM India's package implementation & maintenance practice with its SAP, Oracle, Siebel, Peoplesoft, JD 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) ,Energy & Utilities 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.

[edit]Linux

Technology Center

IBM invests a billion dollars each year in its Linux efforts worldwide. This center in India contributes in R&D of Linux related IBM products.

[edit]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 Embassy Golf Links, Bangalore office in out-sourced business processes of IBM clients.The company has send out more than 800 newly recruited employees in the year 2008 and the process is still going on.According to the stacks IBM Daksh is on the top position in the BPO Industry in India.

[edit]Business

Analytics Center of Competency

In a move to focus on growing business analytics marketplace, IBM on November 9, 2009, has announced the creation of a new Business Analytics Centre of Competency in Bangalore, India. IBM's new business analytics

centre is to offer global support and is expected to be staffed by over 200 consultants with advanced analytics skills.[6][7][8][9]