by CIO Staff

IBM CEO Palmisano to Sell India Game Plan to Analysts

Jun 05, 20063 mins

IBM Chairman and CEO Sam Palmisano will brief top analysts in Bangalore, India, on Wednesday on the importance of the company’s Indian operations to IBM’s global strategy.

The meeting with Wall Street and other analysts, called IBM Global Briefings, are typically held once a year in the United States and Europe, company executives said. Holding a briefing in Bangalore points to the importance of India to IBM, as it extends its operations to become a truly worldwide services provider, said Mats Agervi, vice president for global delivery services at IBM India on Monday.

“We are not in India for lower costs, but to take advantage of the talent in the country to do the high-end things that IBM does elsewhere in the world,” Agervi added.

Palmisano, who arrives in India late Monday, will also be meeting customers and addressing employees jointly with Indian President A.P.J. Abdul Kalam.

IBM, which until recently kept its operations in India largely under wraps, had a media tour Monday of the company’s facilities in Bangalore. Analysts will also be given a tour of the facility, a company spokeswoman said.

A number of multinational technology companies, including services companies like Accenture of Bermuda, have set up operations in India to tap the low-cost and abundant skilled staff in the country. Microsoft, for example, does product development and technical support from India and also has set up a research lab.

IBM disclosed last month that it has about 43,000 staff in India, up from 9,000 employees at the beginning of 2004. Its Indian business process outsourcing (BPO) services subsidiary, for example, has grown to 20,000 employees from about 6,000 two years ago.

Besides a BPO operation, IBM also has a research lab in India, one of eight such labs worldwide, that employs about 100 staff.

Another operation, called the Global Business Solutions Center, offers application services in a variety of areas. The center, for example, developed an application for wireless monitoring of fuel cell cars to check out their usability and safety.

IBM India’s Global Services Delivery Center offers a variety of services, including remote monitoring and management of infrastructure, data hosting, network operations and security, and an IT help desk. The company also does product software development in India.

IBM’s revenue in India grew by 55 percent last year, and by 61 percent in the first quarter of this year, Agervi said.

-John Ribeiro, IDG News Service

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