India fastest growing market for IBM

Logs in 55% growth during 2005; seen posting $1.5 billion topline; adds 16,500 people

IBM India on Thursday said that it had recorded a stupendous 55 per cent in its topline growth in 2005 as against 45 per cent recorded in 2004, making this the fastest growing region for IBM. However, it declined to reveal specific financial figures.

Dataquest reported a turnover of Rs 4,219 crore for IBM in 2004-05. Going by the, IBM's turnover in Indian during calendar 2005 should be around $1.5 billion.

The company added 16,500 people during 2005, taking its India strength to 38,500. With this, IBM's workforce in India is its second largest in the world, after that in the US.

According to industry estimates, close to 50 per cent of the workforce is in business transformation outsourcing, a practice which IBM ramped up by acquiring Daksh during early last year.

Shanker Annaswamy, MD, IBM India said: "With the SMB (small and medium business) market in India growing around 17 per cent year-on-year and contributing 60 per cent of total IT spending, IBM India's SMB business is fast outpacing the market growth rate, fuelling domestic revenue for the company."

Presently, IBM has over 3,000 customers and 2,500 business partners in India in the SMB space. IBM penetrated into B cities and C cities in India aggressively in 2005, reached out to 27 cities and created 400 partners.

"India is also a major hub for IBM, along with China and Brazil, in housing major global delivery centres as its drives down costs and adds value for its global customers," added Annaswamy. The launch of the Application Management Services centre in Hyderabad, infrastructure management facilities in Bangalore, India Research Lab in Bangalore and IBM Daksh centres in Pune, Chandigarh and Kolkata have underlined IBM's India focus and growing business strength.

He added that IBM India was rated as the biggest MNC software exporter in India for the fourth consecutive year by STPI and has so far registered 13 sequential quarters of double digit growth.

Speaking on how IBM was also attempting to develop the talent pool in the country, he said that in 2005, IBM through its Academic Initiative Program, reached out to over 300 institutes, training 75,000 students on open standards-based technologies last year.

Commenting on how 2006 will pan out for IBM, he said: "While retaining the market leadership position, we are aiming to develop a more robust solutions business in 2006. This will include establishment of open standardsoLinux-based computing, extending SMB markets, bringing best practices from global experience and partnering development by reaching out to Class B and Class C cities."

He further said that in keeping with IBM's commitment to developing the local community in which it operates, IBM will be actively involved in e-governance initiatives, community programmes, SMB market and society at large to influence lives in India and bring about a positive change in the entire ecosystem, while looking at India as a key destination for innovation.