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Case
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Reference no. 306-591-1
Published by: IBS Research Center
Published in: 2006

Abstract

In 1991, the Indian government started relaxing the foreign investment norms and this encouraged foreign IT (information technology) companies like Electronic Data System (EDS), Hewlett-Packard (HP) and International Business Machines Corporation (IBM) to enter India. Among these, IBM, a multinational computer technology corporation, had shown keen interest in establishing itself in the Indian market. Till 2001, IBM witnessed slow growth and started experiencing gain from 2002. In 2005, to compete with the Indian software giants like Wipro, Infosys and Tata Consultancy Services, IBM adopted the global delivery model and with other foreign companies like Accenture, Intel and AMD (Advanced Micro Devices, Inc) planning to invest heavily in India, IBM decided to invest US$6 million to start several initiatives that would serve to fulfil its vision of becoming a globally integrated company. With the Indian software giants dominating the IT sector and with the entry of other foreign software companies, analysts were sceptical about IBM''s success. Would IBM succeed in its endeavours?
Location:
Other setting(s):
2006

About

Abstract

In 1991, the Indian government started relaxing the foreign investment norms and this encouraged foreign IT (information technology) companies like Electronic Data System (EDS), Hewlett-Packard (HP) and International Business Machines Corporation (IBM) to enter India. Among these, IBM, a multinational computer technology corporation, had shown keen interest in establishing itself in the Indian market. Till 2001, IBM witnessed slow growth and started experiencing gain from 2002. In 2005, to compete with the Indian software giants like Wipro, Infosys and Tata Consultancy Services, IBM adopted the global delivery model and with other foreign companies like Accenture, Intel and AMD (Advanced Micro Devices, Inc) planning to invest heavily in India, IBM decided to invest US$6 million to start several initiatives that would serve to fulfil its vision of becoming a globally integrated company. With the Indian software giants dominating the IT sector and with the entry of other foreign software companies, analysts were sceptical about IBM''s success. Would IBM succeed in its endeavours?

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Location:
Other setting(s):
2006

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