Dual focus for IBM India''s expansion

IBM India plans to go for a dual focus for its expansion following the launch of the subsidiary recently. The company will focus on the growing domestic market as well as serving global needs.

IBM India, which is now headquartered in Bangalore, has a second centre in Pune, where it plans to double its staff strength from 300 to 600 by February 2000. A third centre is planned at Gurgaon near Delhi. The key objective in expanding its operations in the country would be to get closer to the market.

The Pune centre will service the Mumbai market, besides being the base for application development for the local manufacturing industry and the systems software group. IBM India is investing over Rs 30 crore in the Pune centre.

IBM plans to get business in the customer market, including strategic outsourcing for companies. This will mean that IBM will take care of all IT-related functions of the organisation and offer end-to-end services, from consultancy to operations to system maintenance.

IBM sees India as a key market, and the country is very high on its list of emerging markets. Pawan Kumar, president, IBM Global Services, says, "If the IT spend in the country doubles from the present level of 1 per cent of GDP, we see tremendous potential."

Globally IBM sees three areas of high potential, namely e-business, supply chain management, ERP solutions, business intelligence and customer intelligence. All except the last two are very relevant to IBM''s plans in India.

IBM achieved a turnover of Rs 840 crore in India in 1998-99, with IT services (including exports) contributing Rs 350 crore.