IBM to focus on small enterprises

IBM India is eyeing opportunities in the $3 billion small and medium business (SMB) segment in the domestic market to shore up its revenues further.

The company, which employs around 39,000 people, already has a significant portion of its revenues coming from the SMB segment.

"The SMB segment in the country accounts for 60 per cent of total IT spending in the industry, and IBM India also has a similar share," a company spokesperson said.

The company, which has initiated programmes like the 'Very Focused Business' aimed at businesses with 99 employees, will also increase its presence in the tier-II cities, from 170 channel partners to 225 over the next 10-12 months.

The company has, however, ruled out any differential pricing to tap the segment.

"The SMB segment, which has been growing at about 17 per cent versus the industry average of 15 per cent, is the fastest-growing business segment in IBM's India operations. In the last 15-18 months, the company has had an intense focus on the segment," said Ganesh Margabandhu, director - global SMB, south Asia, IBM.

The increase in the availability of bandwidth and more comprehensive solution offerings from IT vendors are some of the key growth drivers for the segment.

Though the company did not divulge its SMB division headcount, Margabandhu said there has been a considerable rise in the number of people hired for the segment.

While the SMB segment has been on the rise for IBM worldwide, too, the segment growth for its India operations has been significant, as what qualifies as small business in developed regions is considered big business in the country and, hence, not included in the segment.

BETTING SMALL

TIBM already has a significant portion of its revenues coming from the SMB segment

It will also increase its presence in the tier-II cities, from 170 channel partners to 225