As IBM spins out a new company to help focus in two lucrative markets, the company's CEO Arvind Krishna on Friday said that the yet to be named new company will have a separate leadership team in India.
However, people working for IBM India have nothing to worry as the IBM CEO said that he expects the employees to be accommodated in one company or the other.
"I do not expect the creation of the new company to have any material impact in India," Krishna told reporters in a call, adding that there will be nothing "controversial".
"This is not a restructuring, this is a spin out," he said.
IBM on Thursday said that it will separate its Managed Infrastructure Services unit of its Global Technology Services division into a new public company.
The yet to be named new company is currently codenamed "NewCo".
The separation is expected to be achieved as a tax-free spin-off to IBM shareholders, and completed by the end of 2021.
The creation of NewCo will help IBM focus on its open hybrid cloud platform, which represents a $1 trillion market opportunity, the company said.
"Focus normally allows for better utilisation of capital, better utilisation of skill, acquisition of right companies that serve the purpose of each of the two companies," Krishna said.
IBM's open hybrid cloud platform architecture, based on RedHat OpenShift, works with the entire range of clients' existing IT infrastructures, regardless of vendor.
The new company will be a managed infrastructure services provider.
IBM said that it has relationships with more than 4,600 technology-intensive, highly regulated clients in 115 countries, including more than 75 per cent of the Fortune 100, a backlog of $60 billion, and more than twice the scale of its nearest competitor.
IBM currently employs 380,000 people serving clients in 170 countries and India has the highest number of IBMers outside of the US -- a key research and innovation hub for the tech giant that set up its first office in the country almost 26 years back.
Krishna, who guides IBM's overall strategy in core and emerging technologies including Artificial Intelligence (AI), quantum computing, Blockchain, Cloud platform services, data-driven solutions and nanotechnology, has the task at hand to tap the growing talent pool in new-age technologies and leverage the true potential.
Today, IBM powers two of the largest telcos in India, nine out of 10 top banks, 2/3rd of milk and dairy products industry, country's largest airport (traffic), etc are run and managed by IBM.
Krishna, an alumnus of Indian Institute of Technology, Kanpur (IITK) knows the potential the country has and has gone bullish on India, especially on the R&D and innovation to create for the world.
IBM was one of the first MNCs to recognize India as an innovation hub and set up its first Research lab in IIT Campus, Delhi in 1993 to provide back-end support to its global business.
Today, IBM's four labs in India - India Research Labs, India Software Labs, IBM Systems Development Labs and Global Technology Services Labs - are innovation centers for global product development, new services and solutions.
IBM's businesses in India include Cloud and Cognitive Solutions (including RedHat and Watson), Services, Systems, Security, The Weather Company (an IBM business), R&D labs and client innovation centres.
--IANS
gb/na
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU