IBM expects India revenues to touch $1 billion in '07
IBM Vice President Jesse Green says, "We expect our revenues to reach $1 billion by the end of this year up from 700 million in 2006 driven by strong factors."business Updated: Dec 08, 2007 11:34 IST
IT major IBM on Saturday said it expects revenue from Indian operations to touch $1 billion by the end of December, growing at a rate of 39 per cent currently.
"We expect our revenues to reach $1 billion by the end of this calendar year up from 700 million in 2006 driven by strong factors. In the first three quarters of the current financial, the company's revenue has grown by over 39 per cent," IBM Vice President (Financial Management) Jesse Green said in New York.
He said factors like competitive offerings, effective sales force, strong brand name, technology base along with the ability to offer hardware and software combination would contribute to the expected figure.
The $1 billion would include revenues from services and solutions provided by the IBM to domestic clients and other global corporates operating in India along with total revenues of IBM Daksh, its business process outsourcing unit.
Last year the company's India revenue grew by 37 per cent as against 2005, while the CAGR from 2002 to 2006 was over 49 per cent.
"The company, which caters to around 17 industry sectors, experienced broad-base growth during 2002-2006 period in telecom, financial services and Small and Medium Businesses growing at 58 per cent, 34 per cent and 35 per cent respectively," Green said. IBM 2 LAST
About 2010 roadmap, he said in future India will not only contribute to global revenue pool of IBM but also provide research software.
"We think about India as a support to entire IBM. The country will be a hub of global delivery which will help us improve margin components and growth initiatives," he said.
The recent deals, which IBM has inked with some of the big corporates in India, would also contribute to the revenues to a large extent.
In the telecom sector the company is working with Bharti Enterprises, while it has also entered into agreements with companies like the Central Board of Direct Taxes (CBDT), Delhi International Airport Limited (DIAL), DLF, Idea, Financial Information Network and Operations (FINO), BSNL, and Apollo in 2007.