Bangalore: In a bid to try and accelerate its consulting revenues here, IBM Corp. is rolling out the IBM Institute of Business Value in India, the fourth country after Japan, China and the US for the seven-year-old, internal think tank.
“Our focus is to educate ourselves in all kinds of industry around the world and take up primary research in various sectors of the economy, which would be beneficial for both the company and clients,” said Peter J.S. Korsten, vice-president and global leader of the institute.
Changing focus :IBM building in Bangalore. India is the fourth country after Japan, China and the US where the company has decided to roll out its seven-year-old think tank
Emerging markets, such as India, need dedicated teams to understand local developments in various industries, Korsten said, but declined to say how many people will be in the institute here.
The institute, which aims to provide senior executives with strategic insights on the critical business issues, has a team of around 60 researchers and consultants worldwide.
They have published about 150 papers in human resources management, financial management as well as on pharmaceutical and automotive industries.
“The idea is to deliver research and analysis, access to subject matter experts and ongoing client dialogue with both global and local relevance,” Korsten said. “While we are open to collaborations with entities such as the Indian Institute of Management, we will be drawing upon our global expertise from our consultants located worldwide to study the local sectors.”
The institute has already done a study on the Indian automotive sector in collaboration with the automotive analysis division of the University of Michigan Transportation Research Institute last year. It will now conduct studies in health care, retail and energy and utilities.
“Besides helping our global clients to get the Indian perspective, our studies enable the Indian firms to get a global perspective,” said Daniel W. Latimore, the institute’s global research director.
“It will help IBM with their go to market strategy, besides creating awareness among clients and help them to make informed decisions,” said Avinash Vashishta, chief executive officer of Tholons Inc., an advisory firm that also conducts surveys and studies.
The institute expects to help local consultants to better understand the market and help position IBM as a consulting firm rather than as an information technology services firm, Latimore said.
India is one of the fastest growing markets for IBM with some $1 billion (Rs4,290 crore) in 2007 revenues. In the fourth quarter ended 31 December, IBM India signed new multi-year service deals aggregating some $1.4 billion.
IBM is the largest multinational operating in India with more than 73,000 employees in 25 locations. The demand for IT services in India is growing at 30-32% annually, the fastest expansion of such a market anywhere in the world, from about $5 billion, according to market research firm Datamonitor India.