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Shamik Paul

Bangalore, Feb. 7 The software products market is veering towards reusable software assets, which can be customised according to the client’s requirement, Mr Pradeep Nair, Director, Software Group-India and South Asia, IBM, told Business Line.

Since the reusable software can be scaled up, scaled down or modified depending on the client’s requirement, most companies are offering products as well as services, he said. There are only a few product-only companies, he added.

This concept has worked well in the price-competitive Indian market, and the company introduced its express range of products that are easy to deploy and use. The range makes it easy for clients to access technology, he said.

Mr Nair said IBM works with its Indian clients, helping them deploy technology. There are about 1,500 people focused on client engagement, and this is unique to India, he said.

He said lots of Indian customers are scaling up their operations, and there is hunger for new products in India. Since Indian customers did not have enough infrastructure, it is easier for them to deploy new technology. The customers here are very receptive and there is no legacy, Mr Nair added.

He said the Indian IT industry is young, and yet to mature. “I would be surprised not to see good products coming out of the Indian market, and we would want to capture that,” he added.

Mr Nair said while the software group accounts for 20 per cent of IBM’s revenue, it contributes to 40 per cent of profits, and by 2010, it would deliver half the profits.

He said their growth is organic as well as through acquisitions. IBM acquires bigger companies to enter a new market, Mr Nair said, but it opts for smaller companies if it wants to fill a specific gap in its portfolio, he said. “Customer demands change. If we don’t have certain things, we bring it in through acquisition,” he added.

On future acquisitions, Mr Nair said it is all about where the market is going and not so much as what IBM wants to do.

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