The story
Pre-liberalization story
In making the change to its new mode of operation, a number of restructuring steps were taken:
- All installed equipment (equipment in India was all leased by the month – a GOI requirement) was 'sold' to the existing users for a nominal amount of less than $10
- The (profitable) Service Bureaus were given to the employees who were employed in them at that time. A management structure was established, based upon several of the most senior Indian managers, who collectively became the majority shareholders in the new company, which they named IDM (International Data Management)
- The equipment service business was transferred as a single total entity to the GOI, on the understanding that they would continue to offer maintenance service to all existing users. IBM undertook to provide spare parts for installed equipment for at least a further 5 years
- Employees who were working in other countries at that time were offered positions in those countries, if the immigration laws allowed. Most accepted and a number went on to achieve promotions to senior positions in those countries and around the world
- The employment of all other employees was terminated, with what were generally considered to be generous redundancy terms.
Post-liberalization story
The Indian economy was liberalized in 1991, relaxing FDI norms. IBM re-entered India in 1987 with a Tata joint-venture, named Tata Information Systems Ltd. Its business interest in India was still focused on product sales.
Current activities
IBM India has now grown to an extent where it poses a stiff challenge to homegrown Software companies of India in IT global delivery and manpower attraction/retention. It now operates the following business lines from India which contributes to worldwide IBM in a global delivery framework: India Software Labs (ISL), India Research Lab (IRL), Linux Technology Center, Global Business Services(GBS), Global Technology Services (GTS) formerly known as ITD-GD (Information Technology Delivery – Global Delivery), Global Business Solutions Center (GBSC), Sales & Distribution (S&D), Integrated Technology Services (ITS).
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On 2 March 2012 it was reported that IBM India wants to open sales office in around 40 Tier-I and Tier-II cities of India in year 2012–2013.
From Wikipedia’s article on IBM India, shared under CC BY-SA 4.0.5