The Hindu Business Line : India figures high in IBM's growth plans

THE offshore story is no different for the Big Blue. The world's largest IT company, IBM employed close to 6,000 people in India in December 2002, and subsequently grew its base to 9,000 employees by December 2003 and to 23,000 by December 2004.

Although the company declined to divulge growth forecasts, the fact that India currently represents the second most populous location for the company across the world, goes to speak volumes about its outlook for the country.

"IBM's globally integrated company strategy is not just about providing competitive pricing for our clients, it is about providing maximum value and that means utilising the skills wherever they may be," an IBM spokesperson said.

IBM feels that Indian players in the IT outsourcing domain would continue to be challenged by the need to grow to more geographies and mitigate their risks. "We are seeing the expansion of Indian firms in other Asian countries such as China, the Philippines among others as well as in the Americas. While global players have that advantage currently, they will continue to augment their presence in critical and emerging delivery centres such as India, China, Brazil and Russia among others," she said.

Infosys - which grew from 10,738 employees in 2001-02 to 46,196 employees in second quarter this fiscal - feels that the challenge is not about adding cheaper offshore staff to supplement existing practices, but incorporating offshore resources and their process-centric delivery expertise into a company's DNA.

"The incumbent players entering this terrain would have to restructure existing business, compensation and operating models and reduce high-priced onsite staff to make way for the offshore resources. On the other hand, large Indian companies will be able to grow into strategic consulting by adding resources," said Mr Nandan Nilekani, CEO of Infosys.

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