IBM India to move away from low-cost model
The global delivery operations of IBM India are spread across 4 locations - Bangalore, Hyderabad, Pune and Gurgoan.
By TNN |
BANGALORE: The India operations of IBM is no more based on the low cost model as the technology giant is looking at the country as the base for global delivery of IT services as well expand further into the domestic market.
"The low cost model is unsustainable and the young population in India provides the talent pool," said, Michael Cannon-Brookes, VP - business development, India and China - IBM, here on Tuesday.
IBM which started its India operations in 1992 with around 1,000 people has grown rapidly to headcount of over 43,000 with the operations spanning IT services, R&D and BPO.
Brookes said IBM has been focusing on emerging markets as it garners 60% of its revenues outside US. The India operations would focus on three areas: global delivery of services, hub of innovation and R&D.
Amitabh Ray, VP - global delivery, IBM India said that it is moving from a labour based model to an asset based model. This would witness higher automation of IT delivery processes using standards like service oriented architecture and readymade templates.
The global delivery operations of IBM India are spread across 4 locations - Bangalore, Hyderabad, Pune and Gurgoan. It is also opening one centre at Chennai with a capacity of 3,000 people.
Ray said India has become IBM's largest delivery hub and the presence of large number of English speaking population gives it an edge over others, adding, "We have not lost a single client."
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
