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IBM to invest $100 million in India

BS Bureau

Global major IBM's plans to expand operations and footprint in India, including plans to invest $100 million over the next two years in software laboratories, got a further shot in the arm with India forming a vital part of the Big Blue's worldwide plans to embrace Linux platform for its hardware and software products.

IBM's move to go in for the open source operating system is a $1 billion global initiative. Of this, $200 million will be invested in the Asia-Pacific region which includes India.

"We see India as one of the largest potential growth markets for Linux in this region. However, telecom infrastructure still remains the weakest link in the chain," said Roger Beagley, marketing management manager for ASEAN and South Asia, IBM Singapore Pte Ltd.

One of the seven IBM Linux Development Centres will be set up in Bangalore where the Linux Competency Centre is currently based. IBM will soon flag off a programme to build up alliances with Linux-focused business partners and independent software vendors and educational institutions, he said.

"One such Linux business partner alliance programme will be held in Kolkata next month. We believe Linux will be the key element of e-business infrastructure in the future and hence the investments," said Adip N Roy, vice-president (east), IBM Global Services.

IBM India Ltd, which is one of the top watch on the Big Blue's technology map, is repositioning its operations in India with increased focus on business-partnership model across the country.

IBM is reorienting its approach in India by trying to work out a marketing model which will involve teaming alignments with best-of-the-breed partners. The Linux initiative will help the Big Blue to evangelise and develop a slew of Linux-ready IBM products which can be sold to the client base in the country or used for migrating them to the new platform products.

IBM India has a special division catering to nearly 15 big corporates and organisations like the Reserve Bank, ICICI and others by providing specialised unified services, this will provide a channel for popularising the virtues of the new products which will emerge out of the global major's Linux initiative.

Software services and strategic outsourcing are the key areas of focus for the company which is positioning itself as a facilitator for e-transforming Indian corporates and businesses and the Linux platform is set to play an important role in providing the critical e-infrastructure in the days ahead.

IBM India posted $250 million from its operations in the country last year and currently has a workforce of around 3,000 which is likely to be increased.

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