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IBM Extends Leadership in India Domestic IT Services Market

Registers Marketshare of 9.6% in 2007

NEW DELHI, INDIA - 29 Sep 2008: IBM (NYSE: IBM) today announced that it has retained its leadership in the India domestic IT services market and registered a market share of 9.6% for calendar year 2007, according to leading IT market research and advisory firm IDC(1). This was driven by significant, large-scale business transformation engagements, signings across consulting and application services portfolios and growth in Integrated Technology Services, Strategic Outsourcing, and Maintenance & Technical Support.

Commenting on the company's continued market dominance, Nipun Mehrotra, Vice President and General Manager, Global Technology Services, IBM India/South Asia, said, "It is indeed a great honor to be recognized as a leader by IDC in the domestic IT services market. While organizations in India put their efforts towards the next phase of growth, they simultaneously want to mitigate any kind of risk that may impede their growth. Organizations today understand the significance of optimizing their investments on IT and viewing both IT and business strategy as a complementary piece and not isolated. To realize all these, they are looking up to partners like IBM who can help their business really grow and not just stop short at fulfilling some need-based IT requirements."

"The India domestic IT services market has grown to be over US$ 5 billion in 2007 and this growth can be attributed to the growth in number of outsourcing contracts being signed up in the country," said Praveen Sengar, Senior Manager, Software & Services Research, IDC India. "Vendors that continue to invest in building their capabilities will find numerous opportunities to tap the rapidly-growing demand for services from local customers as Indian enterprises' IT deployments increase in maturity and complexity to meet emerging business challenges."

According to IBM, in order to effectively address unique customer requirements, the company has been leveraging its world-wide capabilities, assets, innovative approaches and experience. The company has a wide range of global assets -- both from technology and business perspective, and it is able to replicate these assets for clients in India as well. IBM is also creating unique solutions and localizing innovation efforts to cater to specific client needs in an Indian context.

"The Indian domestic IT market has witnessed huge transformational deals lately as opposed to stand-alone services in a piece-meal fashion from multiple vendors and this trend is likely to grow as companies ride the growth wave to differentiate in the market and become players in the global economy," said Sandip Patel, Managing Partner and General Manager, Global Business Services, IBM India/South Asia. "Clients want global know-how and prefer a partner like IBM so they can leverage the length and breadth of technological innovation, global industry skills, and financial strength. What separates us from the rest is our ability to combine industry insights, software, hardware and consultancy into business solutions for our clients."

IBM Global Services works closely with over 2,200 organizations in India, spanning across varied industries, providing them diverse spectrum of IT services. 2007 saw the company signing up customers -- small, mid-sized and large -- across all the key industries and regions. Driven by strong market demand for IBM's deep insights and expertise in the areas such as business transformation and reengineering, IT infrastructure design and management, green data centre as well as business continuity and disaster management, IBM Global Services continued to sign up major deals and new wins in the first six months of 2008.

Key IBM service deals in 2007 and 2008 in India include:



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Jenna Gable
IBM Media Relations
Office: (917) 472-3512

Vibha Dutta
IBM Media Relations - India
Office: +91-9810819260

Goldie Srivastava
IBM Media Relations - India
Office: +91-9880309691

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1 (1) Source: IDC's India Domestic IT Services Market Analysis and Forecast 2008-2012 report