In two weeks, it has a simple message at an investor meet. Those are not the exact words used by the Chairman and CEO of the International Business Machines or IBM but they convey the essence of what they said. The IBM plans to double profits in five years,. leaning heavily on the analytics software, a suite of the products, solutions and service that the promise to extract the never before value from the mountains of the data each of the global clients that is generated. The Palsimano is steering a company with some of $96 billion or RS4,43,612 crore in the revenues into a new territory for the second time in a decade. With the company set on a path into technology services away from the hardware. The Palmisano bought the Price water house coopers consulting business. In the year 2005 they sold IBM personal computer division in Lenovo.
From a little know start-up, a company which was among the first movers in 1999 into what would in last years be better known as the business process outsourcing or the Business Process Outsourcing services. An operation that had less than 6,000 employees and $60 million acquisition in that space. In 2004 it has become the key to the Big Blue’s as IBM is called from the days it sold blue-painted mainframe computers growth. The half of the tech giants Business Process Outsourcing operations are grouped under IBM Daksh today. Some 30,000 people strong and the competitors reckon it turns in the $600 million in the sales a shade under the half of the IBM India revenues a second only to its biggest rival in India.
In more revenues per employee it employs another 65,000 in tech services and the products in India. They had planned for the success but got an even bigger success than expected. The value that the Daksh brings to the IBM fold goes beyond just the size of the business. Most of the Business Process Outsourcing firms have set up their Indian operations with a labor arbitrage and talent enhancement view. This has led to a gainshare model that the IBM Daksh has with the most of the clients where it gets to share in the financial upsides in the contracts that receives hefty bonuses when it meets the targets. The IBM move away from the traditional stronghold of the large customers. For an acquire of some 1,600 times the size of the Daksh be revenues in 2004. The IBM chose to play the second fiddle after the acquisition. Not only did it know that the Business Process Outsourcing business it had a rewarding experience from the three years earlier when it acquired PwC consulting.
REFERENCE:
http://businesstoday.intoday.in/story/ibms-indian-silver-bullet/1/5653.html
