IBM India - A Profile

IBM has been present in India since 1992 (re-entry, after an exit in the 1970s). Since
inception, IBM in India has expanded its operations considerably with regional
headquarters in Bangalore and offices in 14 cities including regional offices in New
Delhi, Mumbai, Kolkata and Chennai. Today, the company has established itself as one
of the leaders in the Indian Information Technology (IT) Industry.

IBM has set the agenda for the industry with 'on demand business' - a kind of
transformation where an organisation changes the way it operates and reduces costs;
serving customers better, reducing risks and improving speed and agility in the
marketplace. IBM is already working with customers to transform them into 'on demand'
businesses. IBM is the only company in the world that offers end-to-end solutions to the
customers from hardware to software, services and consulting. Linux support further
enhances IBM's e-business infrastructure enabler capability.

Our offerings: IBM is the only IT company in the world and also in India that offers
end-to-end solutions to customers from hardware to software, services and consulting.

IBM Global Services is the world's and also India's largest information technology
services and consulting provider. IGS provides the entire spectrum of customers' e-
business needs -- from the business transformation and industry expertise of IBM
Business Consulting Services to hosting, infrastructure, technology design and training
services. IGS delivers integrated, flexible and resilient processes -- across companies and
through business partners -- that enable customers to maximise the opportunities of an
on-demand business environment.

In 2005, IBM announced the acquisition of Network Solutions Ltd., a leading

infrastructure services company in India. This strategic investment will enable IBM to
augment its networking and managed services portfolio of offerings in India and broaden
it’s reach across the country.

Software Group the largest provider of middleware and the second-largest software
business in the world offers its customers comprehensive solutions to meet their e-
business requirements. IBM Software provides best-of-breed solutions for financial
services, manufacturing, process, distribution, government, infrastructure and small &
medium business sectors. IBM Software portfolio consists of:

- Transformation and integration solutions that are built on the IBM WebSphere
middleware platform.
- Information leveraging solutions that are built on a portfolio of Data management
(DB2) tools.
- Lotus product line to help organisations leverage collective know-how.
- Tivoli range of products to enable organisations to manage complex technological
infrastructure.
- Rational range of Application Development Tools to help software development
houses develop applications in a structured and systematic way.

Systems and Technology Group: The portfolio of eServers (xSeries, iSeries, pSeries,
and zSeries) offer a broad range of products from entry level, mid-range to high-end
servers and mainframes, presenting customers with the best technologies and practices to
support their e-business infrastructure requirements.

IBM has been providing leading-edge storage technology to organisations around the
world for nearly half a century. IBM offers a complete portfolio of storage networking
products and solutions that not only includes LTO, SAN, NAS but also IP Storage -
iSCSI appliances and gateways.

IBM's Personal Computing Division was acquired this year by Lenovo Group Limited,
the leading Personal Computer brand in Asia. Lenovo will continue to be the preferred
supplier of PCs to IBM and IBM will provide service and support for 5 years to Lenovo
PCs.

IBM Global Financing provides flexible and attractive financing and leasing programs
to fund Information Technology (IT) requirements of Indian customers. IGF helps
customers through greater access to the hardware, software, solutions and services
essential to compete in the global marketplace.

Customers can buy IBM products from its Business Partners. Also, IBM makes available
its range of 'Think' offerings and xSeries eServers through ShopIBM
(http://www.ibm.com/shop/in), an online product store.

India is an important market for IBM and the company has been making significant
investments from time to time.

IBM Innovation Center for Business Partners: (One among 10 facilities worldwide)
Independent Software Vendors are encouraged to port their solutions on IBM platforms
at this Center and develop Web based applications for Indian customers.

Linux Solution Center, Bangalore: (One among 7 facilities worldwide) The center
supports Business Partners and Independent Service vendors across the ASEAN / South
Asia region.

IBM Linux Competency Center, Bangalore: (One among only 4 facilities in Asia) This
center develops standards and embedded software for open source, undertaking high-end
research in the area for IBM Worldwide.

Software Innovation Center, Gurgaon: This state-of-the-art center combines IBM's

global experience and technology expertise to deliver e-business solutions for Indian
organisations and also the government through the e-Governance Centre. The center
offers IBM’s customers a range of services including technical consultation, proof of
concept and technical presentations, implementation planning, solution architecture,
application design and development, deployment, and education and training. The e-
Governance Centre, a part of this facility offers technology, support and infrastructure to
help governments and total service providers to design, develop, test and port prototypes
of e-Governance applications.

India Software Lab at Bangalore and Pune: The Software Lab in India develops,
enhances and supports key IBM Software products & technologies in collaboration with
other IBM labs world wide. Center for Advanced Studies at Bangalore was established at
the India Software Labs to allow universities access to IBM's leading-edge product
development and the supporting infrastructure, while IBM has the opportunity to work
with academic leaders and researchers on research projects.

High Performance On Demand Lab in India, Bangalore – This specialised software

and services lab in India to drive automation and virtualisation into the increasingly
complex IT infrastructures supporting the emerging economy of India. This is the first of
its kind lab for IBM in India, bringing specific high-value skills to help clients in India
and the surrounding region to enhance and optimise their IT resources to support the
growth of their businesses.

Engineering & Technology Services Center, Bangalore: This center provides

technology design services for advanced chips, cards and systems to companies in India
and across Asia.

India Research Laboratory , Delhi: (One among 8 facilities worldwide) IBM's India
Research Laboratory (IRL) focuses on areas critical to expanding the country's
technological infrastructure. It also has significant initiatives in Services and Sciences,
Information Management, User Interaction Technologies, e-Commerce, Life Sciences,
Distributed Computing and Software Engineering. Currently, IRL researchers are
working on several projects like bioinformatics, text mining, speech recognition for
Indian languages, natural language processing, grid computing, and autonomic
computing, among others.

Services Innovation and Research Center, Bangalore: will be an extended arm of

IBM's India Research Lab (IRL), headquartered in New Delhi. The Services Innovation
and Research Center (SIRC) was recently launched as an initiative that will work in close
collaboration with IBM's Global Services group to develop innovative technologies and
solutions that improve operational and delivery capabilities.

IBM also set up its Global Delivery Centres at Bangalore, Pune, Gurgaon and
Kolkata. They deliver "best-of-breed" technology solutions to IBM customers worldwide
covering middleware, e-business technologies, enterprise and web technologies, data
warehousing across functional areas like Supply Chain Operation Services, Financial
Management Services, Human Resource Services, Customer Relationship Management,
e-Business Integration, Application Management Services.
Global Business Solution Center in Bangalore - IBM further expanded its global
consulting delivery capabilities with the establishment of a first-of-a-kind Global
Business Solution Center. The center will allow IBM's more than 60,000 consultants to
collaborate and deploy reusable tools and assets in 55 key business areas such as
Consumer Driven Supply Chain Optimisation, Banking Risk and Compliance and
Product Lifecycle Management.

Business Transformation Outsourcing Centers at Bangalore, Delhi and Mumbai:

This center handles Business Transformation Outsourcing needs of IBM customers
worldwide. Some key areas of competence of this center are Customer Contact Centers,
Receivables Management, Telemarketing, Transaction Processing and Finance and
Accounting.

With the acquisition of Daksh eServices, one of Asia's leading business services
providers, with service delivery centers in India and Philippines, IBM further enhanced
the BTO service capability. With Daksh, IBM adds banking, insurance, retail, hi-tech
telecommunications and travel verticals to BTO India’s service capabilities.

Partnering India

IBM shares the belief that India can unleash its true potential only through making IT
available to and usable for large numbers of people. IBM's Community initiatives focus
on education and children and leverage its expertise in technology to address societal
issues. IBM has partnering relationships in India with a number of educational
institutions. IBM has also set up an IT Center in Mumbai in association with Victoria
Memorial School for the Blind to impart IT education to visually impaired people. IBM
KidSmart Early Learning program was launched to further strengthen IBM’s
commitment to community in India. This is the only program in India aimed at
introducing technology at the pre-school level in disadvantaged sections of society to get
a head start on their academic development through the use of age-appropriate software
developed by IBM. Tryscience is another community related programme launched, which
reinvents science learning, recreates the interactive experience of onsite visits, and
provides science projects as well as multimedia adventure field trips for museum visitors
- primarily children, their parents and teachers.

Vision Statement - Solutions for a small planet

Mission Statement - At IBM, we strive to lead in the invention, development and

manufacture of the industry's most advanced information technologies, including
computer systems, software, storage systems and microelectronics.

We translate these advanced technologies into value for our customers through our
professional solutions, services and consulting businesses worldwide.

IBM India milestones

1951- IBM begins operations in India The business operated successfully until the mid-
1970s, when India’s Foreign Exchange Regulation Act (FERA) required foreign
owned companies to reduce their equity ownership to (in IBM’s case) 26%. For
obvious reasons, IBM was unwilling to take that course of action and so in 1978, the
company ‘changed its mode of business operation’ and began to conduct business in
India as an off-shore entity only, through a Liaison Office, operated by a handful of
local employees.

1992- IBM reenters Indian market through a joint venture

1995- Accredited ISO Tickit 9001 (recertified to ISO9001:2000 in year 2001).

1997- TISL Becomes Tata IBM Ltd, IBM Global Services launched - offers a range of IT
services from IBM including networking services, outsourcing, education, system
integration, consulting, software development and hardware design.

Solution Partnership Center is set up in Bangalore to help Indian ISVs port application
onto proven IBM hardware platforms like AS/400 and RS/6000.

1998-

January-IBM School of Enterprise Wide Computing launched at Indian Institute of

Information Technology (IIIT), to offer short-term courses to the public and credit
courses on enterprise-wide computing to graduate and undergraduate students.

April-IBM India Research Laboratory established in New Delhi, located in the sprawling
campus of Indian Institute of Technology (IIT).

1999

September-IBM India Limited formally launched - after government approves Tata's

divestment plan.

November-IBM India launches PC manufacturing in Pondicherry IBM Global Services

India achieves CMM Level 5 Rating.

2000
June-Global e-business software center set up in Gurgaon to offer IBM’s customers a
range of services including technical consultation, proof of concept and technical
presentations, implementation planning, solution architecture, application design and
development, deployment, and education and training.
November-IBM Global Financing launched in India to provide flexible and attractive
financing and leasing programs to fund information technology (IT) requirements of
Indian customers.

2001-India Software Development Labs established in Pune and Bangalore to develop,

enhance and support key IBM products & technologies with a committed investment of
US $ 100 Million. The state-of-the-art facility is playing an important role in IBM’s
Linux Strategy, working closely with the worldwide Linux Technology Centre.

2002
June-IGSI recognized as the "Top MNC Software Services Exporter" and "Top Foreign
Equity Company" in Karnataka for Year 2001-02 by Software Technology Parks of India
(STPI), Bangalore Chapter.

July-IGSI has also been also recognized as ‘Distinguished IT Exporter' for 2001-02 by
MAIT.

July-Dataquest, India's leading trade magazine has also rated IGSI as the Top MNC
Software Services Exporter for Year 2001-2002.

November-IGSI Exports Services has also been successfully assessed at People

Capability Maturity Level 5 (version 2.0) by SEI, one of the few organisations in the
world to gain this achievement.

2003
January-IBM India Research Labs launches a "Technology Center" at its facilities to
showcase business applicability of cutting edge technologies to organisations in India and
ASEAN.

May-IBM Corporation announced the establishment of a new center in Bangalore, India

to provide technology design services for advanced chips, cards and systems to
companies in India and across Asia.

May-IBM India announced the launch of the 'India Smart Centre', a virtual toll-free
service centre to provide cutting edge services and support to the small and medium
businesses in metros and small towns. The center, the first one of its kind, will provide
easy to use repair and restoration services for IBM desktops, and notebooks.