IBM India

IBM Global Services Private Limited
Subsidiary
Industry Computer hardware
Consulting
IT Services
Founded 1992, (re-entry, after an exit in the 1970s)
Headquarters Bangalore, Karnataka, India
Key people
 Vanitha Narayanan, Managing Director, IBM India Private Limited, & South Asia Head, Shanker Annaswamy, Senior Advisor to the Corporation on India Enterprise[1][2]
Rajesh Nambiar, Vice President & GM, Global Delivery, IBM India,
Products See complete products listing
Number of employees
 ~ 150,000
Parent IBM
Slogan

"On Demand Business",

"What makes you special?"
Website ibm.com/in/en/
IBM India Building at Manyata Tech Park in Bangalore.
IBM India building in Bangalore, decorated as part of the centennial year celebrations.

IBM India Private Limited is the Indian subsidiary of IBM.[3] It has facilities in Bangalore, Delhi, Kolkata, Mumbai, Chennai, Pune, Gurgaon, Noida, Chandigarh, Indore, Bhubaneshwar, Coimbatore, Visakhapatnam and Hyderabad.

Between 2003 and 2007, IBM's head count in India has grown by almost 800%, from 9,000 in 2003[4] to nearly 74,000 in 2007.[5] Since 2006, IBM has been the multinational with the largest number of employees in India.[6] IBM is very secretive about the geographic distribution of its employees. By most estimates, it has close to a third of its 430,000 employees (~ 150,000) in India, and it likely has more employees here than in the US.[7]

Growth and future initiatives

IBM, in an analyst meeting held at Bangalore on June 6, 2005 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.[6]

Year Employees
1900 5001
2003 9,000
2004 23,010
2005 38,500
2006 53,000
2007 74,000
2008 94,000
2009 112,900
2010 131,001

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.[8]

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 growng 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 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 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 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.7858838866

History

Pre-liberalization Story

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

The Indian economy was liberalized in 1991, relaxing FDI norms. IBM re-entered India in 1992 with a Tata joint-venture, named Tata Information Systems Ltd. Its business interest in India was still focused on product sales.

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) formerly known as ITD-GD (Information Technology Delivery - Global Delivery), Global Business Solutions Center (GBSC), Sales & Distribution (S&D), Integrated Technology Services (ITS).

On March 2, 2012 it was reported that IBM India wants to open sales office in around 40 Tier-I and Tier-II cities of India in year 2012-2013.[9]

Business lines

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 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.

Linux Technology Center


Business transformation outsourcing

With the acquisition of Daksh in 2004, IBM now also has a formidable business process outsourcing (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 sent out more than 800 newly recruited employees in 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.

Now Concentrix technologies acquired IBM Daksh.

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.[10][11][12]

Country Managers

The head of IBM India is called a country manager. These people have headed IBM India during its history in the country.

References

  1. ↑ IBM appoints Vanitha Narayanan as IBM India MD - TOI Mobile | The Times of India Mobile Site
  2. ↑ IBM appoints Vanitha Narayanan India managing director
  3. ↑ India Registered Office
  4. ↑ About 1 in 5 IBM Employees Now in India, an Associated Press article via accessnorthga.com
  5. ↑ IBM's 2007 Annual Report, p.50.
  6. ↑ 6.0 6.1 IBM's India Pep Rally, a June 2006 article from BusinessWeek
  7. ↑ IBM India Headcount
  8. ↑ "Big Blue's big India plans". 2006-06-24.
  9. ↑ Business Line : Industry & Economy / Info-tech : IBM foraying in big way in smaller cities
  10. ↑ IBM opens business analytics centre in India
  11. ↑ IBM to set up new business analytics centre in Bangalore
  12. ↑ IBM Opens Business Analytics Center of Competency in India

External links