49 IBM Global Services - Git Going GS

author-image
DQI Bureau
New Update

It took a long time and much speculation. But when it arrived, IBM's software and
services business quickly registered an impressive Rs 70 crore in the first six months of
its existence. Starting September 1997, IBM Global Services (GS) is focusing on software
development for exports, solutions development for domestic industry, services for
domestic enterprises, heterogeneous systems management, and training-all of which was
hitherto a part of erstwhile Tata Information Systems Ltd. Unlike its hardware cousin, IBM
GS has a majority equity (80 percent) of IBM and the balance from Tatas, but like Tata-IBM
Ltd, the entire product portfolio, the methodology, the manpower is entirely IBM.

Advertisment
alt="+ibm gs.jpg (22241 bytes)" border="0" hspace="2" vspace="2">

PRESIDENT:
Pawan Kumar * PRODUCTS AND SERVICES: Systems Integration,
Software Development, Consultancy, Facilities Management
color="#FF0000">* FINANCIAL COLLABORATION: IBM, Tata Industries Ltd size="1" color="#FF0000">* START-UP YEAR: 1997 color="#FF0000">* QUALITY CERTIFICATION: SEI CMM Level 4 size="1" color="#FF0000">* ADDRESS: TISL Tower, Golden Enclave, Air
Port Road, Bangalore 560017
*
TEL: 5267117, 5269299, 5262355
* size="1"> FAX: 5268553

PERFORMANCE HIGHLIGHTS

  • l Exported customized software worth Rs 51 crore and undertook domestic software
    development worth Rs 13 crore.
  • l Hardware services clocked Rs 5 crore.
  •  

    The main strategy of the company is said to be two-fold: to provide a whole host
    of end-to-end services for the Indian market; and to aid in improving IBM's services in
    the world marketplace. In the domestic market, IBM GS is focusing on a wide gamut of
    services ranging from network and integration and network services, where the company
    plans to offer the world's largest network in terms of access points (1,800 worldwide) to
    Indian businesses. In fact, the company plans to make the IBM network 'one local call
    away' so that access becomes easier for the Indian customer.

    The second area of expertise that IBM GS will offer is consulting. While the consulting
    business in India is still in a nascent stage, IBM will focus on areas such as BPR, ERP,
    manufacturing companies, and banking companies. Here, IBM will be competing with some of
    the Big six and other local consulting companies such as TCS, AF Ferguson etc. In the area
    of ERP, IBM GS has tie-ups with SAP, BaaN etc.

    Advertisment

    Simultaneously, given the breadth of experience available with IBM worldwide, IBM GS
    will also enter into Systems Integration (SI) businesses where the basic approach will be
    to provide business solutions using IT as the key enabler. According to IBM, the company
    has a track record of managing complex projects in the areas of

    integrating hardware and software with key business needs of the organizations.

    The advantages that IBM brings to the table will be a mature methodology and a
    formidable experience base. However, one issue that the company will have to contend with
    is the image of 'an expensive company'. IBM says that the Indian customers will find IBM
    GS 'good, but expensive', as expectations from IBM are also high. In any event, the
    company's focus will initially be on the top 200 corporates in India.

    Advertisment

    As far as software development is concerned, IBM GS will be focusing on Y2K, Java
    development, OS/2 support, TCP/IP, design services for IBM etc. Eighty percent of its
    software export business will be with IBM worldwide-which will give the company the
    necessary critical mass that it will need to grow.