IBM sets up India operation for infrastructure services

IBM sets up India operation for infrastructure services

New services facilities will focus on smaller customers

IBM has set up a services delivery operation in India that will focus on infrastructure services to its clients worldwide.

The company already delivers some infrastructure services to large customers covered under multi-year contracts from its Global Development centres (GDCs) in Bangalore and Hyderabad.

The new infrastructure services delivery operation would focus on smaller customers, particularly small and medium size businesses (SMB), vice-president for global delivery of integrated technology services at IBM India, Ganesh Margabandhu, said.

"Our focus will be on projects rather than on long-term annuity business," he said.

The services will be delivered from a new GDC that IBM opened on Thursday in Chennai in south India.

The Chennai centre will initially offer server consolidation, middleware services, and site and facilities services for IBM's global clients and will be later expanded to also include IT strategy and architecture, network services, business continuity and resiliency, security and privacy, and storage and data services.

The centre would initially offer design and implementation of the infrastructure, though later it might also offer remote infrastructure management services, Margabandhu said.

As the business for infrastructure services delivery from India expanded, the company might also look at other locations in India, besides Chennai, for delivering these services, he said.

Some of the delivery of infrastructure services would have to be done on-site at the client premises. This would be handled by local IBM teams, Margabandhu said.

The new GDC in Chennai also housed the delivery of application services, and was equipped to have up to 2,00 staff, IBM said. IBM now has GDCs in six locations in India, with many locations having more than one GDC. The company had 53,000 staff in India as of January this year.

IBM's chairman and CEO, Sam Palmisano, announced last year in Bangalore that the company would invest $US6 billion in the country over the next three years. The new investment would go primarily for staff costs, new service facilities, and on education programs, the company said.

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