IBM is domestic IT market leader, ahead of Wipro Infotech, HCL Tech & HP

BANGALORE: IBM India’s share in the domestic IT services market is at least twice as large as its nearest competitor, Wipro Infotech. A forthcoming report by research firm IDC puts IBM’s market share at 11.9% in the first half of calendar year 2011. The Indian IT services market is estimated to touch $9.5 billion in 2011. That would mean that IBM in India earns revenues of over $1 billion.

Ashish Kumar, GM, global technology services, IBM India/South Asia, said that the company’s key differentiator has been its investments in innovation , domain expertise and value in service delivery through repeatable platforms and service delivery methods .

He said that the evolved relationship with clients through partnership and outcome-based modes is helping the company drive growth in the country . “Openness to adopt new technology and a maturing sourcing approach makes India a promising long term bet,” he added.

After winning some major transformational deals in the telecom sector in the mid-2000 s, the company is now gunning for the banking financial services and insurance (BFSI) sector. Earlier this year Manappuram Finance inked a 10-year multi-million dollar deal with IBM to transform its IT systems. IBM also closed a 10-year transformational deal worth close to Rs 300 crore with India Infoline. Other areas of focus areas for the company include retail, manufacturing and government.

Four industry verticals make 85% of India’s IT services market – BFSI, telecom, manufacturing, and government . It is a highly fragmented market with the top 10 providers having just a 42% market share, with smaller players making up the rest of the market. Compared to the West, the margins are lower in India as the market is very competitive and clients very demanding.

Another key area of focus for IBM is the SMB market where the adoption of technology is slow but building up. In the next 18 months IBM will more than double its branch office presence, with offices in more than 40 cities.
Nirupam Chaudhuri, research manager - software and services, IDC, said that market leaders like IBM, Wipro Infotech, HCL Tech and HP have identified some key emerging themes and used their deep pockets to make investments in these areas.

These areas include infrastructure services, cloud, mobility, and business analytics. IBM is also the market leader in infrastructure services with an 18.2% market share. It is expected to announce an enhanced version of its cloud offerings in the coming weeks.

Chaudhuri added that decisionmaking related to IT investments in India has slowed down a little. “However most CIOs are bullish about the longer term prospects and are continuing to invest in improving efficiencies and customer centricity,” he said.

IN TOP SPOT

A forthcoming report by IDC puts IBM’s market share at 11.9% in the first half of calendar year 2011 With Indian IT services market estimated to touch $9.5 billion in 2011 it means IBM in India earns revenues of over $1 billion After winning some major transformational telecom deals in the mid-2000 s, IBM is now gunning for the BFSI sector IBM also closed a 10-year transformational deal worth close to Rs 300 crore with India Infoline