IBM India has realigned its traditional technology services business and brought in a top global executive to oversee it at a time when India is acquiring renewed importance in the company’s global scheme of things, according to three people aware of the development.
IBM has brought in John Granger, who heads global business services for the company, as part of a move to align its global services business more closely with its India business, given that a lot of traditional software maintenance and development work is currently carried out of India, the people mentioned above said.
Granger was transferred to India earlier this year, according to a person aware of the move. Granger’s role is separate from that of IBM’s India chief Vanitha Narayanan, who continues to lead the company’s Indian operations.
“India is one of the most important destinations for IBM globally and it made sense for Granger to be based here, given that a lot of application development and maintenance work is centered around India,” said one of the people quoted above.
IBM is also in the process of hiring some top executives in India to be part of Granger’s team in the country, one of these people said. The development comes at a time when IBM is on the verge of retaining a landmark outsourcing contract with Vodafone’s India business, which ET had first reported earlier in June.
“IBM has a large services footprint in the country. While there is no structural change, some senior executives have been brought in to drive transformation,” said the second person aware of the development.
IBM declined to comment on the development. ET had reported in February that IBM’s India business generates close to $3.5 billion in revenue, although the technology services giant reported a slight decline in profits for the year ended March 2015.
“Operating profits decreased about 7% from Rs 32,311 million to Rs 30,071 million due to drop in profits in services business coupled with increase in expenses – mainly in salary, rent, communication, maintenance and software,” IBM had said in its annual report.
Over the course of the past decade, IBM replicated the global delivery model that had been perfected by Indian IT firms and built up a workforce of well over 150,000 employees in the country.
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