IBM LIMITED

Background IBM India Limited, a subsidiary of International Business Machines Corporation Inc. (IBM), was set up in September 1999. IBM entered the Indian market with a joint venture with the in 1992. IBM is the only company in the world that offers end-to-end solutions to customers from hardware to software, services and consulting. Since its inception in India, IBM has expanded its operations considerably and currently operates through a network of 14 offices, with regional headquarters at , New , , and . The Company has interests in sales and marketing of servers, PCs and software products and services. IBM’s businesses in India include the IBM Software Group, IBM Global Services, IBM Consulting Services, IBM Global Financing, IBM Solution Partnership Centre (one among 10 worldwide), Linux Solution Centre (one among 7 worldwide), Software Development Centres, Global E-Business Centre and a manufacturing facility at Pondicherry. IBM recorded total revenue of US$ 606 million in FY 04 and is profitable in India. It has a workforce of 23,300 including those at its BPO centre, and 34 per cent of the total revenues come from exports. According to internal sources, IBM has invested approximately US$ 10 million in India so far, mostly in year 2000 for labs, and this does not include the Daksh investment.

Leader in notebook and Dataquest - IDC India. The same survey ranked IBM server segments subsidiary, Daksh eServices as the Best Employer in the BPO Sector. IBM was also ranked second in a list Market of Dream Companies, that respondents aspired to work in. IBM also appeared in the top 3 preferred IT IBM India recorded 31.3 per cent market share in the employers in the country in 2003-04, in an IT employer notebooks segment (revenues) to gain the leadership brand perception study by Brand-comm. position in FY 04. IBM is a market leader in the servers segment with a 32 per cent market share. In the IBM Global Services India was awarded the prestigious lower-end server segment, IBM emerged the leader Gold certification by Cisco Systems, for the relentless with a market share of 38.2 per cent. pursuit of customer satisfaction, training, support and specialisation requirements set by Cisco. Achievements in India IGSI was recognised as the “Top MNC Software IBM India was chosen as one of the Top 3 Employers Services Exporter” in Karnataka for 2003-04 by in Indian IT’s Best Employers Survey conducted by Software Technology Parks of India (STPI), Bangalore

FORTUNE 500 COMPANIES IN INDIA PAGE 100 In April 2004, IBM was awarded the Golden Rhino and improving speed and agility in the marketplace. Award in the Server and laptop category. The Golden IBM is already working with customers to transform Rhino Award is the channel’s seal of approval for them into ‘on demand’ businesses. IBM is the only the Most Reliable Product in the market. company in the world that offers end-to-end solutions IBM stands No.1 in the Portables (Notebook) category to the customers from hardware to software, services in the Customer Satisfaction Audit 2004. The survey and consulting. Linux support further enhances IBM’s was conducted by Dataquest and IDC India among e-business infrastructure enabler capability. 4000 Enterprise CIOs. IBM Global Services is the world’s largest IBM ThinkPad has been chosen Laptop of the Year information technology services and consulting 4 times over the last 5 years. provider, generating record revenues and signings in 2003 of US$ 42.6 billion and US$ 55.5 billion, PC Quest Users Choice Award was picked up by respectively. Some 180,000 professionals in more than IBM for its High End Servers. 160 countries, including India, help clients integrate IBM has also been adjudged Implementation Partner information technology with business value - from the of the Year. business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, Factors for success technology design and training services. Leveraging IBM’s unequalled scope and scale, IBM Global Services Wide range of offerings delivers integrated, flexible and resilient processes - IBM has set the agenda for the industry with ‘on across companies and through business partners - that demand business’ – a kind of transformation where enable clients to benefit from the ‘on demand’ business an organisation changes the way it operates and model by saving money and making their businesses reduces costs; serving customers better, reducing risks more competitive.

SUCCESS STORIES PAGE 101 IBM’s offerings of hardware and expertise in planning, IBM has entered the academic sector by providing IT deploying and maintaining infrastructure of any scale, education, thereby expanding the user market. The enable the company to gain a lead in the domestic company has pioneered partner relationships with outsourcing market. With a manufacturing facility at a number of educational institutions including the IITs Pondicherry for commercial desktops, low and mid- at Delhi, Kanpur and Chennai and a number of range servers, IBM is in a position to offer customised renowned IT schools in the country. products to local customers. Leveraging the India Advantage Marketing strategy Efficient implementation of channel strategy is one of India as a global sourcing base for BPO operations the key factors driving IBM’s success. IBM’s sales grew considerably as a result of the channel infrastructure, IBM expanded the scale of its BPO operations in India programmes and opportunities provided by the with the acquisition of Daksh, the third largest BPO Company to its partner organisations. outfit in India with over 6,000 employees. This enabled IBM to have an international presence in BPO Reduced price for the Indian market operations with big-ticket customers and scale up its Realising that India was a highly untapped and fast- telecom, insurance and Internet customers. growing market, IBM set up operations in all the India as an R&D hub sectors of its business in the country. IBM reduced its notebook prices, bringing them closer to the desktop India Research Laboratory, Delhi: (one among 8 models to increase its market share since the laptop facilities worldwide): IBM’s India Research Laboratory to desktop ratio in India is 1:3 against 1:2 in developed (IRL) focuses on areas critical to expanding the countries. country’s technology infrastructure. It also has significant initiatives in Services and Sciences, Information Strong parental support Management, User Interaction Technologies, e- IBM Corporation provides continuous support to IBM Commerce, Life Sciences, Distributed Computing and India in terms of global human resources and Software Engineering. Currently, IRL researchers are technology. IBM regularly exchanges its talent pool working on several projects covering bioinformatics, across countries, and recently shuffled the top text mining, speech recognition for Indian languages, management across countries. natural language processing, grid computing, and autonomic computing, among others. Increasing the market potential India Software Labs at Bangalore and : The IBM has initiated plans to increase the market potential Software Labs in India develop, enhance and support by increasing the awareness on IT among the masses. key IBM software products & technologies in

FORTUNE 500 COMPANIES IN INDIA PAGE 102 collaboration with other IBM labs worldwide. India as a software development hub IBM also has Global delivery centres in Bangalore, Center for Advanced Studies (CAS) at Bangalore Pune, Gurgaon and Kolkata. They deliver “best-of- was established at the India Software Labs to allow breed’ technology solutions to IBM customers universities, access to IBM’s leading-edge product worldwide covering middleware, e-business development and the supporting infrastructure; while technologies, enterprise and Web technologies, data giving IBM the opportunity to work with academic warehousing across functional areas like Supply Chain leaders and researchers on research projects. Operation Services, Financial Management Services, IBM Innovation Center for Business Partners: (one Human Resource Services, Customer Relationship among 10 facilities worldwide) Independent Software Management, e-Business Integration and Application Vendors are encouraged to port their solutions on Management Services. IBM platforms at this Center and develop Web based applications for Indian customers. Future plans With good success in the country, IBM plans to make Linux Solution Center, Bangalore: (one among 7 the Indian subsidiary a hub for global operations and facilities worldwide) The Center supports Business for its Linux initiatives in the South East Asian region. Partners and Independent Service vendors across the ASEAN/South Asia region.

IBM Linux Competency Center, Bangalore: (one among only 4 facilities in Asia) This Center develops standards and embedded software for open source, undertaking high-end research in the area for IBM Worldwide.

Global e-business Software Center, Gurgaon: This state-of-the-art center combines IBM’s global experience and technology expertise to deliver e-business solutions for Indian organisations and the government through the e-Governance Centre.

Engineering & Technology Services Center, Bangalore: This Center provides technology design services for advanced chips, cards and systems to companies in India and across Asia.

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