IBM India Private Limited
Type Subsidiary
1992, (re-entry, after an exit in the
Founded
1970s)
Headquarters Bangalore, Karnataka, India
Shanker Annaswamy, Country
Manager & South Asia Head
Key people
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, Indore and Hyderabad.
Between 2003 and 2007, IBM's head count in India has grown by almost 800%, 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.
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
the meeting.[3]
Year Employees
2002 5000
2003 9,000
2004 23,010
2005 38,500
2006 53,000
IBM worldwide expects its revenues to be around $120 billion by 2007 74,000
2010, of which nearly $86 billion (68%) would come from IBM 2008 94,000
Global Services alone, with an estimate of about 200,000 employees.
2009 112,900
IBM India would account for 90,000 of these. Roughly translated,
IBM's Indian employees would generate $35 billion of IBM's revenues 2010 131,001
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 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.
[edit] 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 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 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 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
[edit] 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.
[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) formerly known as ITD-GD (Information Technology Delivery - Global
Delivery) , Global Business Solutions Center (GBSC), Sales & Distribution (S&D),
Integrated Technology Services (ITS).
[edit] Business lines
[edit] 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.
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
1992–1994 – Michael Klein
1994–1996 – John R. Whiting
1996–1998 – Ravi Marwaha
1998–2000 – Ranjit Limaye
2001–2004 – Abraham Thomas, currently in IBM Singapore
2004 – Present – Shanker Annaswamy, current Country-head.
Products
Systems and servers by processor
AMD processor-based servers
Intel processor-based servers
POWER systems
z-processor based
Systems and servers by operating system
AIX
IBM i (i5/OS)
Linux
UNIX
Windows
z operating systems
Systems
BladeCenter
Blue Gene (US)
Cluster systems(US)
Power Systems
Smart Cubes
System x
System z
Services:
Business services
Business analytics and optimization
Strategy and transformation
Functional expertise
Midmarket expertise
IT services
Application innovation
Application management
Business continuity and resiliency services
End user services
Integrated communication services
IT services
Middleware services
Security and privacy services
Server services
Site and facilities services
Storage and data services
IT services A-Z
Outsourcing services
Business process outsourcing
IT outsourcing and hosting
Training
Offerings
Certification (US)
Conferences and events
Financing
Asset recovery
Commercial financing
Hardware financing
Manage your IT
Software financing
'Inclusivity' is a way of life at IBM India
IBM India, winners of the NASSCOM
Corporate Award for Excellence in
Gender Inclusivity in 2008.India is a hot destination for skilled labour; yet, amid the
burgeoning workforce there remains ample opportunity to build pipelines of talent and
leadership among women and people with disabilities (PwD). In such an environment,
IBM India has been making its mark as an employer of choice for these diverse groups.
In fact, IBM India won the NASSCOM (National Association of Software and Services
Companies) Corporate Award for Excellence in Gender Inclusivity in 2008.
At IBM, inclusivity is a long-term commitment that began in 1935 with the company’s
equal pay policy for men and women. Following the global heritage of many firsts in
diversity, IBM India has developed many initiatives that drive inclusivity in the
workplace, and also lay a strong foundation for career success for women and people
with disabilities.
Hari Raghavan (Solutions Specialist,
Banking- FSS, IBM India), receiving
the Shell Helen Keller Award 2008.For example, IBMer Suparna Bhattacharya was the
first person in India to become a Senior Technical Staff Member, a huge achievement for
any technologist at IBM. Suparna, the first woman executive in India, hails from the IBM
India Software Labs. Hari Raghavan, Solution Manager, Banking, visually challenged,
won the Helen Keller award in 2008, for being, ―a disabled person who has been an
active ambassador for the cause of employment for disabled people, and is a positive role
model for others." He also says that at IBM, demonstrating diversity is a company value,
and not simply a charitable act or event.
Empowering women at IBM
Consider Kalpana Margabandhu, IBM Director for WebSphere Development. With over
25 years of industry experience, Kalpana leads the WebSphere mission in IBM India's
Software Lab. She also leads Adapters, WPG (WebSphere Partner Gateway), WDI
(WebSphere Data Interchange) and AIM (Application Integration Management)
development in India. She was chairperson of the IBM Indian Women’s Leadership
Council (IWLC) from its inception until 2009, driving various initiatives to enhance the
technical, professional and personal development of women employees at IBM India.
IBM India won the National Award
in the category of BEST EMPLOYER OF
PEOPLE WITH DISABILITIES in 2008.Hard work, focus on excellence and a positive
attitude are Kalpana's motto for success. Kalpana identifies being accepted as the single
largest challenge to leadership in a predominantly male work environment. "Though it
may take some time, if a woman has the required competence, and the will to stand up for
it, she will be accepted as the leader," she adds.
When asked for her advice to other women employees, Kalpana states, ―IBM provides
employees with an excellent support system and invests strongly in individual career
development. It is in our interest to use it to help ourselves grow. The best advice I have
is—you can do it. The confidence my managers and extended teams had in me has helped
me grow.‖
Mangala Gowri, IBM Research staff member from India Research Laboratory says,
―IBM is one of the few organizations that has a technical ladder. I really enjoy research
and developing innovative tools and solutions to real problems.‖ Challenging the notion
of the "glass ceiling (link resides outside of ibm.com)", Mangala adds, ―Competence is
the most important factor in breaking the glass ceiling, and getting ahead, especially for
women. Anyone who is good at his/her job is unstoppable.‖
Enabling IBMers with disabilities
Murali C. Sharma is a young, high achieving IT professional who is also an enthusiastic
volunteer with On Demand Community, IBM’s worldwide volunteer program. He works
with visually challenged people, and is also a NCPEDP (National Centre for Promotion
of Employment for Disabled People) Helen Keller Award winner. Murali is also part of
the IBM Corporate Service Corp (US) team, engaged in socio-economic projects in
Vietnam.
Dr. Daniel Dias, receiving National
Award for Accessibility Innovation
from the Presidentof India.Visually challenged himself, Murali has not only overcome his
physical challenge to make his mark in life, but is a source of encouragement and support
for those around him who are challenged. Summing up his career at IBM, Murali says, ―I
never felt that I am a disabled employee. In fact at IBM, none of my colleagues or
managers has ever made me feel different. When they don’t see any weakness in me,
there is no question of sympathy. They always see abilities in me, as I do see positives in
whoever I meet.‖
"EnABLErs" (a networking group of PwDs
at IBM India) Murali is happy to see more PwDs (People with disabilities) being
accommodated across IBM India. He worked on the RESO (Real Estate Site Operations)
accessibility study with a team of "EnABLErs" (a networking group of PwDs at IBM
India) and proposed several ideas for making all IBM buildings completely accessible.
Murali adds: ―It gives me immense pleasure to know that I am a valuable employee.‖
Moving ahead, IBM India will continue to provide employees with a level playing field
so that excellence and achievement are the only criteria for success.