IBM Canada, which has 19,600 employees on its rolls, announced Thursday that it is axing a number of jobs to contain costs.
The US software giant, which is reportedly in the process of laying off 5,000 staff in America and transferring a lot of them to India, said the Canadian cuts will affect the staff from customer care positions to executives.
Without specifying how many jobs will be cut, an IBM Canada spokesman told the Canadian Press that "there is no specific area being targeted and no specific region - it is across the country.''
He added, "From our perspective this is just the way we manage resources depending on the needs of clients and how that changes.''
With 400,000 employees worldwide, IBM is cutting costs by shifting many jobs to low-cost India and other countries to maintain profits.
Showing posts with label IBM. Show all posts
Showing posts with label IBM. Show all posts
Saturday, March 28, 2009
Friday, March 27, 2009
For laid-off IBM workers, a job in India?
An IBM program offers some incentive to relocate. Americans who have migrated overseas find less pay – but a good lifestyle. Click here to read entire post from csmonitor.com.
More IBM news:
IBM Employees Sound Off on Layoffs: from eWeek Blog
Will IBM layoffs mean more jobs sent overseas?: from NetworkWorld
More IBM news:
IBM Employees Sound Off on Layoffs: from eWeek Blog
Will IBM layoffs mean more jobs sent overseas?: from NetworkWorld
IBM plans lump-sum severance for those laid off
Pay and benefits detailed for workers due to get laid off Thursday. The severance package IBM is expected to give employees selected for a layoff includes a lump-sum severance payment, as well as counseling and financial planning services.
IBM is expected on Thursday to lay off as many as 4,000 to 5,000 employees in its global business services unit, according to the Alliance@IBM.
This particular severance package, distributed tonight by the union, lists employees -- by title and age alone -- in the applications services unit that have been selected for the layoff. The number affected is 1,674 in total.
The company has already cut some 4,000 workers in a number of business units this year, according to the alliance.
IBM is expected on Thursday to lay off as many as 4,000 to 5,000 employees in its global business services unit, according to the Alliance@IBM.
This particular severance package, distributed tonight by the union, lists employees -- by title and age alone -- in the applications services unit that have been selected for the layoff. The number affected is 1,674 in total.
The company has already cut some 4,000 workers in a number of business units this year, according to the alliance.
Thursday, March 26, 2009
IBM to cut 5,000 jobs in U.S.
* Latest round hits more than 4 pct of U.S. workforce
* Job cuts mostly in IBM's global services business
* Shares close down 0.42 pct (Adds details on IBM's workforce, business)
IBM will cut about 5,000 jobs in the United States, adding to similarly large cuts in the past few months, sources with knowledge of the matter told Reuters on Wednesday.
The job cuts will account for over 4 percent of IBM's U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM's global services business, which includes outsourcing and consulting services.
An International Business Machines Corp spokesman declined to comment. The company, which had a total workforce of 398,455 as of end 2008, has not disclosed how many jobs it has cut so far this year, but has said it was making "structural changes" to reduce spending and improve productivity.
IBM, which now earns around two-thirds of its revenue from outside the United States, has been expanding its workforce in emerging markets like India and China.
At the end of 2008, employment in the BRIC countries -- Brazil, Russia, India and China-- totaled around 113,000.
* Job cuts mostly in IBM's global services business
* Shares close down 0.42 pct (Adds details on IBM's workforce, business)
IBM will cut about 5,000 jobs in the United States, adding to similarly large cuts in the past few months, sources with knowledge of the matter told Reuters on Wednesday.
The job cuts will account for over 4 percent of IBM's U.S. workforce, which totaled around 115,000 at the end of 2008. The sources, who were not authorized to speak publicly on the issue, said the cuts will mostly be in IBM's global services business, which includes outsourcing and consulting services.
An International Business Machines Corp spokesman declined to comment. The company, which had a total workforce of 398,455 as of end 2008, has not disclosed how many jobs it has cut so far this year, but has said it was making "structural changes" to reduce spending and improve productivity.
IBM, which now earns around two-thirds of its revenue from outside the United States, has been expanding its workforce in emerging markets like India and China.
At the end of 2008, employment in the BRIC countries -- Brazil, Russia, India and China-- totaled around 113,000.
IBM Cutting More Jobs, Shifting Work to India
International Business Machines, a blue-chip tech company that has managed to continue to grow despite the global recession, is expected to eliminate a large number of U.S. employees from its global-business services unit, The Wall Street Journal reported Wednesday.
Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM employees working in India, the latest example of a successful company that is continuing to slash costs and take advantage of cheap Asian labor, the Journal reported.
Representatives from IBM did not immediately respond to a request for comment. IBM tends to carry out "stealth" layoffs by avoiding public disclosure.
IBM managers have been receiving training from human-resources specialists on handling the layoffs, the Journal reported.
The layoffs could impact a sizable amount of employees, as the global-business services unit is the tech giant's largest in terms of revenue and employment, with 180,000 workers worldwide, the Journal reported.
IBM isn't alone among profitable companies cutting costs to weather the economic storm -- for example, both Microsoft and Caterpillar announced plans earlier this year to slash 5,000 jobs each.
However, the apparent cost-cutting moves for IBM come as the company is said to be in talks to take over rival tech company Sun Microsystems for up to $8 billion.
The latest layoffs will only add to an already bleak labor picture in the U.S., which has been stuck in a recession since Dec. 2007. Last week the Labor Department said jobless claims filed by people out of work for more than one week soared by 185,000 to 5.47 million. The U.S. unemployment rate stands at 8.1% -- the highest level since Dec. 1983.
Weeks after slashing nearly 5,000 jobs, IBM is expected to shift the work of a large number of U.S. workers to IBM employees working in India, the latest example of a successful company that is continuing to slash costs and take advantage of cheap Asian labor, the Journal reported.
Representatives from IBM did not immediately respond to a request for comment. IBM tends to carry out "stealth" layoffs by avoiding public disclosure.
IBM managers have been receiving training from human-resources specialists on handling the layoffs, the Journal reported.
The layoffs could impact a sizable amount of employees, as the global-business services unit is the tech giant's largest in terms of revenue and employment, with 180,000 workers worldwide, the Journal reported.
IBM isn't alone among profitable companies cutting costs to weather the economic storm -- for example, both Microsoft and Caterpillar announced plans earlier this year to slash 5,000 jobs each.
However, the apparent cost-cutting moves for IBM come as the company is said to be in talks to take over rival tech company Sun Microsystems for up to $8 billion.
The latest layoffs will only add to an already bleak labor picture in the U.S., which has been stuck in a recession since Dec. 2007. Last week the Labor Department said jobless claims filed by people out of work for more than one week soared by 185,000 to 5.47 million. The U.S. unemployment rate stands at 8.1% -- the highest level since Dec. 1983.
Tuesday, March 24, 2009
IBM loses Telstra contract to Infosys Technologies; possible job losses in IBM India
Australia’s biggest phone company, Telstra Corp. has ended one of its information technology or IT outsourcing contracts with International Business Machines Corp. (IBM) and has given it to Infosys Technologies Ltd, ‘The Australian’ reported on Monday.
Less than a week ago, the newspaper had reported Telstra’s decision to terminate its IT outsourcing contract with fraud-hit Satyam Computer Services Ltd.
“IBM Global Services’ multi-million dollar applications support contract with Telstra has been scrapped as a result of the telco reducing its outsourcing partners from four to two,” the daily reported. “The decision to shift from IBM to Infosys could result in hundreds of job losses locally and in Bangalore, where IBM operates outsourcing centres.”
‘The Australian’ said IBM staff were told the scrapping of the vendor’s software support would represent about 50% of its $1 billion, six-year deal with Telstra, signed in early 2006.
Less than a week ago, the newspaper had reported Telstra’s decision to terminate its IT outsourcing contract with fraud-hit Satyam Computer Services Ltd.
“IBM Global Services’ multi-million dollar applications support contract with Telstra has been scrapped as a result of the telco reducing its outsourcing partners from four to two,” the daily reported. “The decision to shift from IBM to Infosys could result in hundreds of job losses locally and in Bangalore, where IBM operates outsourcing centres.”
‘The Australian’ said IBM staff were told the scrapping of the vendor’s software support would represent about 50% of its $1 billion, six-year deal with Telstra, signed in early 2006.
Monday, March 23, 2009
Indian software firms eye defence contracts
The terror attacks and the continuous security braches in the country has opened up opportunities for Indian software firms in the defence sector. The software companies are eyeing the various Information and communication technology (ICT) contracts worth $500 million of the defence forces, expected to be dished out within next three years.
The defence forces are looking at setting up of new real time software systems and replacement of legacy communication systems, IT industry officials and analysts told Business Line. IT firms such as IBM, Tata Consultancy Services (TCS), Rolta and others see opportunity as a large chunk of work would come in the areas related to setting up of strategic communication systems, tactical communication systems, battlefield management systems etc. K. K. Singh, Chairman and CEO, Rolta India said, "The communication systems used by our defence forces are about 20-25 years old. The establishment is keen to upgrade tactical equipment systems used by our forces. We see significant opportunities in this space."
Apart from communication systems, firms would also be roped in for development of core applications such as ERP and for inventory management and e-maintenance of defence systems and equipment. In the defence space, however, things have not changed much. "The slowdown has not yet impacted the pace of projects. Having said that, one must look at this market from a five-year horizon," said Puneet Gupta, Vice-President, Public Sector, IBM India/South Asia.
The defence forces are looking at setting up of new real time software systems and replacement of legacy communication systems, IT industry officials and analysts told Business Line. IT firms such as IBM, Tata Consultancy Services (TCS), Rolta and others see opportunity as a large chunk of work would come in the areas related to setting up of strategic communication systems, tactical communication systems, battlefield management systems etc. K. K. Singh, Chairman and CEO, Rolta India said, "The communication systems used by our defence forces are about 20-25 years old. The establishment is keen to upgrade tactical equipment systems used by our forces. We see significant opportunities in this space."
Apart from communication systems, firms would also be roped in for development of core applications such as ERP and for inventory management and e-maintenance of defence systems and equipment. In the defence space, however, things have not changed much. "The slowdown has not yet impacted the pace of projects. Having said that, one must look at this market from a five-year horizon," said Puneet Gupta, Vice-President, Public Sector, IBM India/South Asia.
Friday, March 20, 2009
IBM's bid to acquire Sun might cost jobs
Source: denverpost.com
A reported negotiation to purchase Sun Microsystems could mean layoffs for two of the region's largest employers.
Boulder's largest private-sector employer, IBM Corp., reportedly is in talks to purchase Sun Microsystems Inc., Broomfield's biggest, in a move that has analysts pondering corporate culture clashes and possible job losses.
Several published reports Wednesday citing unnamed sources said IBM is offering at least $6.5 billion in cash to acquire longtime rival Sun.
Neither company commented on the reports.
Analysts said a combination of Armonk, N.Y.- based IBM and Santa Clara, Calif.-based Sun likely would produce job cuts.
IBM employs about 3,400 at its campus in north Boulder. Sun Microsystems has an estimated 2,500 workers at its facility in Broomfield's Interlocken business park.
"It's certainly always a concern when you have a merger or an acquisition and there is duplication in job functions," said Don Dunshee, president and chief executive of the Broomfield Economic Development Corp. "We'd hate to see any adjustments to their employment numbers."
IBM would benefit from acquiring Sun's large share in the computer-server market and gaining access to Sun's customer base in finance, telecommunications and government, analysts said.
But the deal would create strange bedfellows, said University of Colorado economist Gary Horvath.
"You've got a West Coast company and an East Coast company with distinctly different corporate cultures," he said.
Former Sun chief executive Scott McNealy "has been quite an IBM basher over the years," said technology analyst Frank Gillett of Forrester Research in Cambridge, Mass. "It would be very curious to see them combine."
Gillett said Sun is known for having "a lot of cool technology but not much recognition in the market for it."
Reports of IBM's possible purchase sent Sun shares soaring $3.92 Wednesday to $8.89, a gain of 79 percent. IBM was down 96 cents, or 1 percent, to $91.95.
Until Wednesday, Sun's stock had fallen about 70 percent over the past year as restructuring efforts and thousands of layoffs failed to prevent two straight quarterly losses with prospects for a third, according to analysts' estimates.
Sun said in November that it would cut up to 6,000 jobs, 18 percent of its global workforce, after terminating 7,000 positions in the previous three years. Sun does not disclose regional employment totals, but economists have estimated that its Colorado workforce has dropped from about 3,500 in 2007 to 2,500 now.
A reported negotiation to purchase Sun Microsystems could mean layoffs for two of the region's largest employers.
Boulder's largest private-sector employer, IBM Corp., reportedly is in talks to purchase Sun Microsystems Inc., Broomfield's biggest, in a move that has analysts pondering corporate culture clashes and possible job losses.
Several published reports Wednesday citing unnamed sources said IBM is offering at least $6.5 billion in cash to acquire longtime rival Sun.
Neither company commented on the reports.
Analysts said a combination of Armonk, N.Y.- based IBM and Santa Clara, Calif.-based Sun likely would produce job cuts.
IBM employs about 3,400 at its campus in north Boulder. Sun Microsystems has an estimated 2,500 workers at its facility in Broomfield's Interlocken business park.
"It's certainly always a concern when you have a merger or an acquisition and there is duplication in job functions," said Don Dunshee, president and chief executive of the Broomfield Economic Development Corp. "We'd hate to see any adjustments to their employment numbers."
IBM would benefit from acquiring Sun's large share in the computer-server market and gaining access to Sun's customer base in finance, telecommunications and government, analysts said.
But the deal would create strange bedfellows, said University of Colorado economist Gary Horvath.
"You've got a West Coast company and an East Coast company with distinctly different corporate cultures," he said.
Former Sun chief executive Scott McNealy "has been quite an IBM basher over the years," said technology analyst Frank Gillett of Forrester Research in Cambridge, Mass. "It would be very curious to see them combine."
Gillett said Sun is known for having "a lot of cool technology but not much recognition in the market for it."
Reports of IBM's possible purchase sent Sun shares soaring $3.92 Wednesday to $8.89, a gain of 79 percent. IBM was down 96 cents, or 1 percent, to $91.95.
Until Wednesday, Sun's stock had fallen about 70 percent over the past year as restructuring efforts and thousands of layoffs failed to prevent two straight quarterly losses with prospects for a third, according to analysts' estimates.
Sun said in November that it would cut up to 6,000 jobs, 18 percent of its global workforce, after terminating 7,000 positions in the previous three years. Sun does not disclose regional employment totals, but economists have estimated that its Colorado workforce has dropped from about 3,500 in 2007 to 2,500 now.
IBM's workforce in U.S. declines in '08 but grows overseas
Company's overall workforce increased slightly last year
The number of workers that IBM employs in the U.S. declined by about 5% last year, but the company's overall head count is increasing because of overseas hiring.
IBM finished 2008 with 115,000 U.S. employees, down from the 121,000 it reported at the end of 2007, according to its most recent annual report released this month. Overall, IBM finished 2008 with 398,455 employees worldwide, an increase of nearly 12,000, or about 3%.
In 2007, IBM said it had 98,000 employees in Brazil, China, India and Russia, but that number increased by 15% to 113,000 last year. Most of those employees are in India.
IBM continues to cite the U.S. as the country with its largest workforce, but it is not providing a breakout of head count for India, which may well be the second-largest country for employment. In 2007, IBM said it had 74,000 workers in India.
IBM's head count could change substantially if it buys Sun Microsystems Inc. or another company this year.
Sun employed 34,900 worldwide last year, but recently announced reductions of as many as 6,000 employees. Both companies are reportedly in merger talks. The two companies have neither confirmed nor denied the reports.
IBM recently instituted a program for employees in the U.S. to take jobs overseas, but if they choose to go, these employees would be paid at local rates, not at U.S. wage levels.
IBM has had about 4,000 layoffs in the U.S. this year, according to the union Alliance at IBM.
The number of workers that IBM employs in the U.S. declined by about 5% last year, but the company's overall head count is increasing because of overseas hiring.
IBM finished 2008 with 115,000 U.S. employees, down from the 121,000 it reported at the end of 2007, according to its most recent annual report released this month. Overall, IBM finished 2008 with 398,455 employees worldwide, an increase of nearly 12,000, or about 3%.
In 2007, IBM said it had 98,000 employees in Brazil, China, India and Russia, but that number increased by 15% to 113,000 last year. Most of those employees are in India.
IBM continues to cite the U.S. as the country with its largest workforce, but it is not providing a breakout of head count for India, which may well be the second-largest country for employment. In 2007, IBM said it had 74,000 workers in India.
IBM's head count could change substantially if it buys Sun Microsystems Inc. or another company this year.
Sun employed 34,900 worldwide last year, but recently announced reductions of as many as 6,000 employees. Both companies are reportedly in merger talks. The two companies have neither confirmed nor denied the reports.
IBM recently instituted a program for employees in the U.S. to take jobs overseas, but if they choose to go, these employees would be paid at local rates, not at U.S. wage levels.
IBM has had about 4,000 layoffs in the U.S. this year, according to the union Alliance at IBM.
Five great products IBM would get by buying Sun
Courtesy: computerworld
1. VirtualBox. Sun acquired German-based Innotek in 2008. This is a really innovative desktop virtualization product that despite having more than four million downloads needs more visibility. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9062319
2. Q-layer. Sun acquired this company in January. The company, based in Belgium, manages and automates deployment of public and private clouds.
3. MySQL. We all know the Swedes make great companies. MySQL is a next gen database company who will find a welcome home at IBM which loves all things database.
4.Neogent. Sun acquired this identity management company in 2006. This company was really an identity management database building tool. This is increasingly important as database security systems get built, combined and must remain secure themselves.
5. Kealia. I saved the best for last. Andy Bechtolsheim was a Sun Micrososystems founder. He also is about the smartest guy around in networks (He essentially built Cisco's Catalyst 4000 family). While IBM has been moving away from hardware, Andy could be the catalyst for the next gen unified storage,computing, network platform.
1. VirtualBox. Sun acquired German-based Innotek in 2008. This is a really innovative desktop virtualization product that despite having more than four million downloads needs more visibility. http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9062319
2. Q-layer. Sun acquired this company in January. The company, based in Belgium, manages and automates deployment of public and private clouds.
3. MySQL. We all know the Swedes make great companies. MySQL is a next gen database company who will find a welcome home at IBM which loves all things database.
4.Neogent. Sun acquired this identity management company in 2006. This company was really an identity management database building tool. This is increasingly important as database security systems get built, combined and must remain secure themselves.
5. Kealia. I saved the best for last. Andy Bechtolsheim was a Sun Micrososystems founder. He also is about the smartest guy around in networks (He essentially built Cisco's Catalyst 4000 family). While IBM has been moving away from hardware, Andy could be the catalyst for the next gen unified storage,computing, network platform.
Why would IBM buy Sun Microsystems? Software, services
Source: SanJoseMercuryNews With IBM reportedly in talks to buy Sun Microsystems, industry experts say the two tech giants — both of which earned early fortunes by selling expensive hardware — are looking to a future based on a much broader range of computing gear, software and tech services.
"It's about the whole data center," said Chris Foster, a veteran analyst at Technology Business Research, noting that a deal would give IBM control over Sun's cornerstone Java programming language and other valuable software, as well as access to hardware customers and highly profitable contracts for consulting and other services.
Both companies declined to comment Wednesday on reports that IBM is negotiating a possible $6.5 billion purchase of Sun — a deal that would shake up the global tech industry and spell the demise of a venerable but now-struggling Silicon Valley pioneer. After its founding in 1982, Sun built a hugely successful business selling powerful computer workstations and later the servers behind much of the first Internet boom.
News of the talks first surfaced Wednesday in The Wall Street Journal, which cited unnamed sources familiar with the discussions. While those sources said a deal could be struck this week, analysts said it is by no means certain, and even suggested Sun might entertain offers from other suitors.
But if the sale occurs, analysts say it would reverberate through the ranks of other tech giants, including Hewlett-Packard and Cisco Systems, which are also expanding their range of data center products and services. It could open the door to more acquisitions as competitors jockey to fill gaps in their own portfolios.
It also could produce substantially more layoffs in an industry already reeling from the recession, as IBM seeks to mitigate the cost by cutting redundant positions in sales, administration, research and development.
Acquiring Sun would give IBM a boost in the computer server market, where the New York company has long competed with Palo Alto-based HP for the position of market leader. Sun is the world's fourth-largest seller of servers, the industrial-strength computers that are the building blocks of most data centers; it had about 10 percent of the market and $5.5 billion in server revenue last year.
Each company has its own lines of hardware, but there is enough overlap that some analysts questioned the benefit of a deal. Though IBM was originally known for its big mainframes, it has in recent years divested its personal computer business and shifted its focus to software and services — which contributed 80 percent of IBM's $104 billion in revenue last year and helped it post a 12 percent increase in profit for its last quarter, despite the global economic slowdown.
Sun, meanwhile, has posted losses in the past two quarters and struggled for several years because the biggest part of its revenue comes from high-end servers and storage systems that many customers are no longer buying. In acquiring Sun, Credit Suisse analyst Bill Shope wrote in a note to investors, IBM would be "doubling down in one of the most secularly challenged segments in servers. In our view, the acquisition makes little strategic sense."
Reports of the talks drove IBM's stock down 1 percent to close at $91.95 on Wednesday, while Sun's stock soared 79 percent, to $8.89.
Sun has based its current business strategy on open-source software and on developing new technology for cost-conscious customers. In recent months, the company has been at the industry's vanguard in offering new storage and server systems that exploit innovations in software and solid-state memory. It's also been developing new cloud-computing services for software developers and Web-based businesses.
Thursday, March 19, 2009
What an IBM-Sun deal could mean for India
The news of global IT giant, IBM, buying Sun Microsystems has been doing the rounds for years. So, despite the Wall Street Journal reporting that an approximately $6.5 billion buyout is imminent, analysts remain sceptical.
However, if the deal were to happen, analysts feel IBM and Sun have a lot of overlaps in technology and in product offerings. Hence, it would be an integration challenge.
In the short term, there may be no impact on the 1,200-odd Indian employees of Sun. In the long run, some could get impacted due to platform and technology consolidation. Sun, though, has been cutting staff over the past few quarters.
“IBM will be the clear market leader (if the deal fructifies) in the server market in India, dominated by HP. But there will be conflict of platforms for IBM,” said an analyst.
There’s a lot of software overlap in databases — IBM has DB2 and Sun has MySQL.
India is now an important market for Sun Microsystems, both for its products and creating intellectual property (IP). For instance, the number of programmers working on Sun Microsystems’ platforms in India is 780,000, retaining the country’s position as the leading developer location in the world. This is over half the total developer community in the country.
In fact, the Rs 1,700 crore Sun India, with around 1,200 employees, has consistently witnessed close to 30 per cent q-o-q growth in the country, according to Dataquest India estimates.
Servers garnered around Rs 800 crore, storage Rs 300 crore, and software and professional services accounted for the rest in FY08. Sun’s presence in services is negligible. An attempt was made to address the anomaly in 2008 with Sun Learning Services, which accounted for Rs 50 crore. Its professional services, under Sun Tech Consulting, took off as well.
Sun’s India Engineering Centre (IEC), the first in Asia, was set up in Bangalore in 1998. The company has also set up its APAC’s first Control Centre in Chennai — the third such centre globally.
The India R&D centre has also played an important role in creating IP. Of the total 11,000 patents awarded, over 170 are from the Bangalore R&D centre.
However, for engineers at Sun India, this is much more than just an acquisition. “It’s about the culture that Sun promotes. Some of the people working at Sun India have never shifted to any other firm,” said a source.
Java is Sun’s best asset, but the platform was never monetised. IBM could help it do so. Sun also has some interesting ideas on cloud computing, IBM’s forte. Finally, Sun can allow IBM to consolidate a data centre rival and bring things back to equilibrium, now that Cisco has entered the market.
Globally, IBM — which also has a significant presence in India, with over 70,000 employees — can acquire server and storage share. With Cisco entering the server market, profit margins could be squeezed, especially if the server essentially becomes a storage and networking box, too. By acquiring Sun, IBM could get more scale. The same argument holds for storage hardware.
Sun is a powerhouse in Unix, still a key platform, but isn’t exactly making waves. IBM could acquire Sun and establish both Linux and Unix. Sun would enable it to put pressure on HP’s Unix-based businesses, too. However, IBM sells AIX Unix servers, while Sun sells Solaris.
There are issues to be worked out on hardware. IBM has refrained from commodity servers and Sun plays in that space. Hardware is often the entry point for IBM’s software and services. With a stronger hardware business, it can fend off HP in the marketplace.
Courtesy:BusinessStandard
However, if the deal were to happen, analysts feel IBM and Sun have a lot of overlaps in technology and in product offerings. Hence, it would be an integration challenge.
In the short term, there may be no impact on the 1,200-odd Indian employees of Sun. In the long run, some could get impacted due to platform and technology consolidation. Sun, though, has been cutting staff over the past few quarters.
“IBM will be the clear market leader (if the deal fructifies) in the server market in India, dominated by HP. But there will be conflict of platforms for IBM,” said an analyst.
There’s a lot of software overlap in databases — IBM has DB2 and Sun has MySQL.
India is now an important market for Sun Microsystems, both for its products and creating intellectual property (IP). For instance, the number of programmers working on Sun Microsystems’ platforms in India is 780,000, retaining the country’s position as the leading developer location in the world. This is over half the total developer community in the country.
In fact, the Rs 1,700 crore Sun India, with around 1,200 employees, has consistently witnessed close to 30 per cent q-o-q growth in the country, according to Dataquest India estimates.
Servers garnered around Rs 800 crore, storage Rs 300 crore, and software and professional services accounted for the rest in FY08. Sun’s presence in services is negligible. An attempt was made to address the anomaly in 2008 with Sun Learning Services, which accounted for Rs 50 crore. Its professional services, under Sun Tech Consulting, took off as well.
Sun’s India Engineering Centre (IEC), the first in Asia, was set up in Bangalore in 1998. The company has also set up its APAC’s first Control Centre in Chennai — the third such centre globally.
The India R&D centre has also played an important role in creating IP. Of the total 11,000 patents awarded, over 170 are from the Bangalore R&D centre.
However, for engineers at Sun India, this is much more than just an acquisition. “It’s about the culture that Sun promotes. Some of the people working at Sun India have never shifted to any other firm,” said a source.
Java is Sun’s best asset, but the platform was never monetised. IBM could help it do so. Sun also has some interesting ideas on cloud computing, IBM’s forte. Finally, Sun can allow IBM to consolidate a data centre rival and bring things back to equilibrium, now that Cisco has entered the market.
Globally, IBM — which also has a significant presence in India, with over 70,000 employees — can acquire server and storage share. With Cisco entering the server market, profit margins could be squeezed, especially if the server essentially becomes a storage and networking box, too. By acquiring Sun, IBM could get more scale. The same argument holds for storage hardware.
Sun is a powerhouse in Unix, still a key platform, but isn’t exactly making waves. IBM could acquire Sun and establish both Linux and Unix. Sun would enable it to put pressure on HP’s Unix-based businesses, too. However, IBM sells AIX Unix servers, while Sun sells Solaris.
There are issues to be worked out on hardware. IBM has refrained from commodity servers and Sun plays in that space. Hardware is often the entry point for IBM’s software and services. With a stronger hardware business, it can fend off HP in the marketplace.
Courtesy:BusinessStandard
IBM may be market leader after Sun takeover
IBM’S reported move to acquire Sun Microsystems for around $6.5 billion could potentially alter the competition landscape in the storage and server market in India.
Media reports have said that IBM could be looking at acquiring Sun Microsystems to consolidate its position in the high end server segment. If the deal goes through, it could easily catapult IBM into the number one position in both server and storage market, much ahead of its closest competitor HP.
A spokesperson for Sun Microsystems India on the likely deal said, “We do not comment on market speculation.” According to industry observers, IBM could potentially gain over 60% marketshare in the non-X86 Unix flavoured server market in India combining along with Sun’s products. IBM already leads HP in this segment. In the X86 server market, HP is number one player followed by IBM.
Similarly in the external storage market, IBM could gain over 40% marketshare along with Sun, overtaking the market leader EMC. However, there are others who argue that there would be nothing complementary for IBM in acquiring Sun as both of them compete very fiercely in the marketplace. It could also lead to certain cannibalisation of the products in the marketplace, if acquisition goes through.
Industry analysts believe that IBM’s reported plans of acquiring Sun Microsystems has nothing to do with Cisco’s entry into the server space as its major competitor is HP.
IBM could also get some high value clients of Sun Microsystems in India, if the deal goes through, especially in the telecom and government segments. Sun Microsystems has also built a very strong base in its open source software and Java portfolio with a large user base among developers and independent software vendors.
Media reports have said that IBM could be looking at acquiring Sun Microsystems to consolidate its position in the high end server segment. If the deal goes through, it could easily catapult IBM into the number one position in both server and storage market, much ahead of its closest competitor HP.
A spokesperson for Sun Microsystems India on the likely deal said, “We do not comment on market speculation.” According to industry observers, IBM could potentially gain over 60% marketshare in the non-X86 Unix flavoured server market in India combining along with Sun’s products. IBM already leads HP in this segment. In the X86 server market, HP is number one player followed by IBM.
Similarly in the external storage market, IBM could gain over 40% marketshare along with Sun, overtaking the market leader EMC. However, there are others who argue that there would be nothing complementary for IBM in acquiring Sun as both of them compete very fiercely in the marketplace. It could also lead to certain cannibalisation of the products in the marketplace, if acquisition goes through.
Industry analysts believe that IBM’s reported plans of acquiring Sun Microsystems has nothing to do with Cisco’s entry into the server space as its major competitor is HP.
IBM could also get some high value clients of Sun Microsystems in India, if the deal goes through, especially in the telecom and government segments. Sun Microsystems has also built a very strong base in its open source software and Java portfolio with a large user base among developers and independent software vendors.
IBM looking at acquiring Sun Microsystems
There are reports that IBM is in talks to acquire Sun Microsystems. The deal is expected to be upwards of USD 6.5 billion. IBM's reported bid to acquire Sun Microsystems Inc. (JAVA) signals an emerging war between technology titans.
The IBM move follows Cisco Systems Inc.'s (CSCO) splashy entry into the market for data centers and servers. A battle between IBM, Cisco and Hewlett-Packard Co. (HPQ) may lead to an arms race as the companies look to use cash hoards to bulk up through acquisitions. With share prices battered by a deteriorating stock market, a lot of bargains are available.
"The smart companies and the ones that look beyond the current slowdown and want to position themselves as the market leader - you'll see them be very aggressive," said Trip Chowdhry, analyst at Global Equity Research.
Acquisitions can shore up one's position, as Sun would do for IBM, or provide a new capability, as Nuova Systems did for Cisco in the server business.
In attacking the $85 billion data-center market, Cisco has $4.2 billion in cash and $24.6 billion in fixed-income securities, Hewlett-Packard Co. (HPQ) has more than $11 billion, and Dell Inc. (DELL) has more than $9 billion in cash and short-term investments.
Given the size of the market, analysts say room exists for all four companies, although smaller players will likely feel the squeeze once Cisco starts to expand. Of the four, Dell may be hurt the worst by Cisco's entry and IBM's move to take out Sun.
IBM's reported $8 billion deal to buy Sun Micro would allow the Armonk, N.Y., company to further integrate hardware and software, and glue them together with its consulting and services expertise.
H-P, meanwhile, also has expanded beyond simple hardware and, through last year's $13.25 billion purchase of Electronic Data Systems, is looking at consulting and outsourcing as part of its service. Cisco brings a more closed system than the others, but adds networking expertise and a simpler, more integrated approach.
Jean Bozman, an analyst for IDC, said the Sun deal positions IBM for the expected consolidation in the server market. She said IBM is aware of Cisco's ability to reshape a market it enters. IBM is the largest server vendor, with a market share above 31%, according to IDC.
IBM shares fell 1.3% to $91.72, H-P shares dropped 3% to $28.85, and Cisco shares added 2.4% to $16.51. Sun Micro shares surged 82% to $9.04.
Possible Deals
Despite the sheer amount of cash on hand, industry observers only see a few major acquisitions, with a majority of deals in the hundreds of millions of dollars. Chowdhry said he expects the number of tech companies to fall by 40% to 60% as a result of consolidation and bankruptcy.
Beyond Sun, Red Hat Inc. (RHT) and Satyam Computer Services Ltd. (SAY) are prime candidates for takeover, Chowdhry said. Red Hat offers the kind of software Cisco and H-P need, while Satyam provides IT services. Neither company was available for comment.
If H-P wants to stay competitive, it should pick up IT services provider BMC Software Inc. (BMC), he said. H-P, however, is still working through its EDS buy.
BMC shares rose 1.5% to $30.21. Shares of Red Hat rose less than 1% to $15.65, while Satyam shares added 5% to $1.66.
For H-P, Blade Network Technologies Inc. and Arista Networks Inc.are two of many start-ups that could get bought in the coming months. Both companies make switches that go on top of so-called blade servers - a necessary component to keeping up with Cisco's integrated system.
Blade CEO Vikram Mehta said he believes the proprietary approach Cisco is taking won't fly with budget-conscious IT managers. Arista couldn't be reached for comment.
Cisco, meanwhile, could pick up an EMC to augment its data center business. The companies are working together with Cisco's new server initiative. NetApp Inc. (NTAP) is another data storage expert that has been named as a potential candidate.
EMC shares gained 2.4% to $11.24, while NetApp jumped 7% to $15.87.
"This is a great market to be a buyer of anything," said Carl Howe, an analyst for research firm Yankee Group.
Dell could look for acquisitions, but given its stock, the company or its server division could potentially be a candidate for acquisition. Dell shares gained 2.5% to $9.57.
Dell declined to comment on rumor and speculation.
H-P questioned IBM's deal with Sun, saying there is a lot of product overlap. Also, the company isn't sure that the high price tag willpressure it to do anything, according to someone familiar with the questions H-P executives have about the deal.
Cisco was more open to the deal.
The IBM move follows Cisco Systems Inc.'s (CSCO) splashy entry into the market for data centers and servers. A battle between IBM, Cisco and Hewlett-Packard Co. (HPQ) may lead to an arms race as the companies look to use cash hoards to bulk up through acquisitions. With share prices battered by a deteriorating stock market, a lot of bargains are available.
"The smart companies and the ones that look beyond the current slowdown and want to position themselves as the market leader - you'll see them be very aggressive," said Trip Chowdhry, analyst at Global Equity Research.
Acquisitions can shore up one's position, as Sun would do for IBM, or provide a new capability, as Nuova Systems did for Cisco in the server business.
In attacking the $85 billion data-center market, Cisco has $4.2 billion in cash and $24.6 billion in fixed-income securities, Hewlett-Packard Co. (HPQ) has more than $11 billion, and Dell Inc. (DELL) has more than $9 billion in cash and short-term investments.
Given the size of the market, analysts say room exists for all four companies, although smaller players will likely feel the squeeze once Cisco starts to expand. Of the four, Dell may be hurt the worst by Cisco's entry and IBM's move to take out Sun.
IBM's reported $8 billion deal to buy Sun Micro would allow the Armonk, N.Y., company to further integrate hardware and software, and glue them together with its consulting and services expertise.
H-P, meanwhile, also has expanded beyond simple hardware and, through last year's $13.25 billion purchase of Electronic Data Systems, is looking at consulting and outsourcing as part of its service. Cisco brings a more closed system than the others, but adds networking expertise and a simpler, more integrated approach.
Jean Bozman, an analyst for IDC, said the Sun deal positions IBM for the expected consolidation in the server market. She said IBM is aware of Cisco's ability to reshape a market it enters. IBM is the largest server vendor, with a market share above 31%, according to IDC.
IBM shares fell 1.3% to $91.72, H-P shares dropped 3% to $28.85, and Cisco shares added 2.4% to $16.51. Sun Micro shares surged 82% to $9.04.
Possible Deals
Despite the sheer amount of cash on hand, industry observers only see a few major acquisitions, with a majority of deals in the hundreds of millions of dollars. Chowdhry said he expects the number of tech companies to fall by 40% to 60% as a result of consolidation and bankruptcy.
Beyond Sun, Red Hat Inc. (RHT) and Satyam Computer Services Ltd. (SAY) are prime candidates for takeover, Chowdhry said. Red Hat offers the kind of software Cisco and H-P need, while Satyam provides IT services. Neither company was available for comment.
If H-P wants to stay competitive, it should pick up IT services provider BMC Software Inc. (BMC), he said. H-P, however, is still working through its EDS buy.
BMC shares rose 1.5% to $30.21. Shares of Red Hat rose less than 1% to $15.65, while Satyam shares added 5% to $1.66.
For H-P, Blade Network Technologies Inc. and Arista Networks Inc.are two of many start-ups that could get bought in the coming months. Both companies make switches that go on top of so-called blade servers - a necessary component to keeping up with Cisco's integrated system.
Blade CEO Vikram Mehta said he believes the proprietary approach Cisco is taking won't fly with budget-conscious IT managers. Arista couldn't be reached for comment.
Cisco, meanwhile, could pick up an EMC to augment its data center business. The companies are working together with Cisco's new server initiative. NetApp Inc. (NTAP) is another data storage expert that has been named as a potential candidate.
EMC shares gained 2.4% to $11.24, while NetApp jumped 7% to $15.87.
"This is a great market to be a buyer of anything," said Carl Howe, an analyst for research firm Yankee Group.
Dell could look for acquisitions, but given its stock, the company or its server division could potentially be a candidate for acquisition. Dell shares gained 2.5% to $9.57.
Dell declined to comment on rumor and speculation.
H-P questioned IBM's deal with Sun, saying there is a lot of product overlap. Also, the company isn't sure that the high price tag willpressure it to do anything, according to someone familiar with the questions H-P executives have about the deal.
Cisco was more open to the deal.
Tuesday, March 17, 2009
Satyam loses 46 customers to rival tech firms
Around 46 customers of Satyam Computer Services have moved their outsourcing contracts to rival tech firms such as TCS, Wipro, IBM and Accenture, ever since the company’s founder and chairman Ramalinga Raju admitted to a financial fraud of over $1 billion.
Potential bidders for Satyam such as Tech Mahindra, L&T, Spice and iGate are readying their strategy for taking over a majority stake in Satyam, and their financial bids will depend a lot upon the amount of business Satyam has from around over 600 existing customers, last reported during company’s financial results for quarter ended September last year.
Top customers such as semiconductor firm Applied Materials, Kansas State Bank, Telstra, Emerson, Nissan, State Farm Insurance and Sony apart from dozens others have either moved out their projects completely, or are in the process of migrating current Satyam work to other outsourcing vendors, as these clients seek to mitigate the operational risks by working with more stable vendors.
“We are waiting for more details about the number of customers existing at Satyam, and the revenue visibility at the company,” said a senior executive at one of the tech firms preparing to bid for a majority stake of Satyam.
Satyam customers are also bringing the rates down by negotiating hard with suppliers such as TCS, Infosys, Wipro and HCL. “In some cases, vendors are ready to accept contracts from Satyam customers at less than 25% rates, including transition costs,” Sabyasachi Sathyaprasad, founder of Mindplex Consulting told ET in a recent interview. Semiconductor firm Applied Materials and automaker Nissan are among top Satyam customers in discussions with TCS and others for awarding new contracts.
Potential bidders for Satyam such as Tech Mahindra, L&T, Spice and iGate are readying their strategy for taking over a majority stake in Satyam, and their financial bids will depend a lot upon the amount of business Satyam has from around over 600 existing customers, last reported during company’s financial results for quarter ended September last year.
Top customers such as semiconductor firm Applied Materials, Kansas State Bank, Telstra, Emerson, Nissan, State Farm Insurance and Sony apart from dozens others have either moved out their projects completely, or are in the process of migrating current Satyam work to other outsourcing vendors, as these clients seek to mitigate the operational risks by working with more stable vendors.
“We are waiting for more details about the number of customers existing at Satyam, and the revenue visibility at the company,” said a senior executive at one of the tech firms preparing to bid for a majority stake of Satyam.
Satyam customers are also bringing the rates down by negotiating hard with suppliers such as TCS, Infosys, Wipro and HCL. “In some cases, vendors are ready to accept contracts from Satyam customers at less than 25% rates, including transition costs,” Sabyasachi Sathyaprasad, founder of Mindplex Consulting told ET in a recent interview. Semiconductor firm Applied Materials and automaker Nissan are among top Satyam customers in discussions with TCS and others for awarding new contracts.
IBM Signs $500 Million IT Deal With Kaiser Permanente
IBM Corp. will help provide members of the Kaiser Permanente health care program with up-to-date online medical data as part of a seven-year, $500 million technology-services contract disclosed Monday.
IBM called it one of the largest service contracts ever awarded in the health care industry. Armonk-based IBM will manage Kaiser's data center operations, storage and software.
The outsourcing means 700 Kaiser employees will lose their jobs, though some might be eligible to work for IBM, the company said.
The deal aims to improve the infrastructure behind Kaiser's HealthConnect, which links the group's facilities in one electronic system for providing medical services and health information online. IBM says about 14,000 doctors and other caregivers access the system daily and about 2.7 million members have access to their health records through the system.
IBM called it one of the largest service contracts ever awarded in the health care industry. Armonk-based IBM will manage Kaiser's data center operations, storage and software.
The outsourcing means 700 Kaiser employees will lose their jobs, though some might be eligible to work for IBM, the company said.
The deal aims to improve the infrastructure behind Kaiser's HealthConnect, which links the group's facilities in one electronic system for providing medical services and health information online. IBM says about 14,000 doctors and other caregivers access the system daily and about 2.7 million members have access to their health records through the system.
Wednesday, March 11, 2009
IBM chief's gets small pay hike
IBM Corp's chairman and chief executive, Sam Palmisano, received a compensation package valued at nearly $21 million in 2008, only slightly higher than the year before.
In describing the pay package in a regulatory filing Monday, IBM's board praised the Armonk, N.Y.-based technology company's "very strong" performance despite the rocky economy. IBM's profit jumped 18 percent to $12.3 billion in 2008, helped by better margins in software and services. Those are two areas where IBM's corporate customers continue to invest as a way to save money, by outsourcing or automating some of their tech chores, like managing payroll.
IBM isn't immune to the downturn, though: Hardware sales took a hit as corporations put off buying new servers and mainframes. IBM shares, which fell 2.7 percent Monday to $83.48, have traded between $69.50 and $130.93 over the past year.
Palmisano, 57, got $1.8 million in base salary, the same as in 2007. He got a performance-based cash bonus of $5.5 million, which was $500,000 above his target for the year.
His perks totaled $1.4 million. That included $493,881 for expenses incurred on personal travel on the company's private plane, dividend equivalents of $453,397 on restricted stock, and $412,000 in company contributions to defined contribution plans.
Palmisano also got an award of performance-based stock that was valued at $12.2 million when it was granted in May. The number of shares he actually gets will depend on IBM's performance, and they won't be handed out until Feb. 1, 2011, the company said in its filing.
Palmisano's total pay package was valued at $20.97 million in 2008, according to the AP's calculations. In 2007, his compensation was $20.91 million, and in 2006 it was $18.77 million, also according to the AP's calculations. The AP formula is designed to isolate the value a company's board placed on an executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission. Those totals instead reflect the size of the accounting charge taken for an executive's compensation in the previous fiscal year.
Separate from the compensation Palmisano was awarded in 2008, he exercised 350,000 options worth nearly $15 million during the year, and had 59,764 shares worth a total of $6,610,537 vest during the year.
In describing the pay package in a regulatory filing Monday, IBM's board praised the Armonk, N.Y.-based technology company's "very strong" performance despite the rocky economy. IBM's profit jumped 18 percent to $12.3 billion in 2008, helped by better margins in software and services. Those are two areas where IBM's corporate customers continue to invest as a way to save money, by outsourcing or automating some of their tech chores, like managing payroll.
IBM isn't immune to the downturn, though: Hardware sales took a hit as corporations put off buying new servers and mainframes. IBM shares, which fell 2.7 percent Monday to $83.48, have traded between $69.50 and $130.93 over the past year.
Palmisano, 57, got $1.8 million in base salary, the same as in 2007. He got a performance-based cash bonus of $5.5 million, which was $500,000 above his target for the year.
His perks totaled $1.4 million. That included $493,881 for expenses incurred on personal travel on the company's private plane, dividend equivalents of $453,397 on restricted stock, and $412,000 in company contributions to defined contribution plans.
Palmisano also got an award of performance-based stock that was valued at $12.2 million when it was granted in May. The number of shares he actually gets will depend on IBM's performance, and they won't be handed out until Feb. 1, 2011, the company said in its filing.
Palmisano's total pay package was valued at $20.97 million in 2008, according to the AP's calculations. In 2007, his compensation was $20.91 million, and in 2006 it was $18.77 million, also according to the AP's calculations. The AP formula is designed to isolate the value a company's board placed on an executive's total compensation package during the last fiscal year. It includes salary, bonus, performance-related bonuses, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year.
The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission. Those totals instead reflect the size of the accounting charge taken for an executive's compensation in the previous fiscal year.
Separate from the compensation Palmisano was awarded in 2008, he exercised 350,000 options worth nearly $15 million during the year, and had 59,764 shares worth a total of $6,610,537 vest during the year.
Monday, March 9, 2009
'Scattered layoffs' in IBM can touch 4,600: Report
Technology giant IBM is resorting to "scattered layoffs" and the total could be nearly 4,600 employees in North America even though the company has reported surprisingly strong quarterly profits in January, a media report says.
"Big companies also routinely carry out scattered layoffs that are small enough to stay under the radar... and IBM is one such company," the New York Times said.
Interestingly, after reporting strong quarterly profits in January, its Chief Executive Samuel J Palmisano in an e-mail message to employees said that while other companies were reducing jobs, his company would not. "Most importantly, we will invest in our people," he wrote.
But the next day, the New York Times said "more than 1,400 employees in IBM's sales and distribution division in the United States and Canada were told their jobs would be eliminated in a month. More cuts followed, and overall, IBM has told about 4,600 North American employees in recent weeks that their jobs are vanishing."
Quoting J Randall MacDonald, IBM's senior vice-president for human resources, the newspaper said "it was routine for the company to lay off some employees while hiring elsewhere".
"Big companies also routinely carry out scattered layoffs that are small enough to stay under the radar... and IBM is one such company," the New York Times said.
Interestingly, after reporting strong quarterly profits in January, its Chief Executive Samuel J Palmisano in an e-mail message to employees said that while other companies were reducing jobs, his company would not. "Most importantly, we will invest in our people," he wrote.
But the next day, the New York Times said "more than 1,400 employees in IBM's sales and distribution division in the United States and Canada were told their jobs would be eliminated in a month. More cuts followed, and overall, IBM has told about 4,600 North American employees in recent weeks that their jobs are vanishing."
Quoting J Randall MacDonald, IBM's senior vice-president for human resources, the newspaper said "it was routine for the company to lay off some employees while hiring elsewhere".
Friday, March 6, 2009
IBM leads race to buy Satyam
Global IT giant IBM is learned to be leading the list of prospective buyers of beleaguered Satyam Computer Services. If the plan fructifies, IBM would become the largest IT services player in India with a combined employee strength of over 125,000 people, reported Business Standard.According to sources close to the development, IBM officials has begun discussions with Satyam board and expressed its desire to acquire a majority stake in the company. Moreover, a team of investment bankers and lawyers from the U.S. and Europe has been brought in to assess the size of the deal and the risks associated with it. It is also believed that IBM has conducted an initial due diligence on some of Satyam's major customers.
Making easy entry for foreign players, Minister of Corporate Affairs P C Gupta had said a week ago that open bids would not be restricted to Indian players. IBM was named one of the hostile bidders for Satyam at the company's meeting in the last December. Apart from IBM, other prominent companies in the race are Larsen & Toubro (L&T), which owns 12 per cent in Satyam, and B K Modi-owned Spice group.
The government-nominated board is expected to invite bids for a 31 per cent stake in the company, but is likely to assure the successful bidder 51 per cent even if it fails to get the additional mandatory 20 per cent from the open offer.
Analysts foresee that if IBM can buy Satyam, that can give IBM the leverage to compete with Indian IT service providers as Satyam has a low-cost structure.
Saturday, February 21, 2009
IBM becomes largest vendor in Indian IT services mkt
IBM Global Services, business and technology services provider has emerged as the largest vendor in the IT Services market in India with a market share of 10.8 per cent, according to a research report.
Springboard Research, infotech tracking firm in its report titled 'India IT Services Competing for Tomorrows Market' ranked Wipro and TCS-CMC in the second and third place, with a market share of 8.7 per cent and 6.1 per cent respectively.
The Indian IT services market is estimated to be 4.8 billion dollar.
IBM continues to be the leader as it continued the momentum this year by signing some major contracts in emerging verticals like retail, healthcare and insurance along with further consolidating its position in telecom & government sectors, it said.
Wipro has recorded the highest growth of all established vendors in 2008 with more than 43 per cent growth over it 2007 revenues.
Other players in the top ten are HP-EDS, HCL, Datacraft, Satyam and Siemens Information Systems Limited (SISL).
The overall market showed clear preference for vendors with end-to-end services portfolio, execution capabilities and the ability to combine software, hardware and consultancy, said the firms analyst Sudip Saha.
Springboard Research, infotech tracking firm in its report titled 'India IT Services Competing for Tomorrows Market' ranked Wipro and TCS-CMC in the second and third place, with a market share of 8.7 per cent and 6.1 per cent respectively.
The Indian IT services market is estimated to be 4.8 billion dollar.
IBM continues to be the leader as it continued the momentum this year by signing some major contracts in emerging verticals like retail, healthcare and insurance along with further consolidating its position in telecom & government sectors, it said.
Wipro has recorded the highest growth of all established vendors in 2008 with more than 43 per cent growth over it 2007 revenues.
Other players in the top ten are HP-EDS, HCL, Datacraft, Satyam and Siemens Information Systems Limited (SISL).
The overall market showed clear preference for vendors with end-to-end services portfolio, execution capabilities and the ability to combine software, hardware and consultancy, said the firms analyst Sudip Saha.
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