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Rediff.com  » Business » IBM has big expansion plans in India

IBM has big expansion plans in India

By BS Economy Bureau in New Delhi
Last updated on: October 28, 2004 13:12 IST
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IBM's chief executive and chairman of the board Samuel J Palmisano has said that the global giant was bullish on India and was planning new initiatives for the country.

Palmisano conveyed this to Prime Minister Manmohan Singh at a meeting in New Delhi on Wednesday evening.

The prime minister told the  IBM chief that his company should  play a greater role in the government's e-governance initiative and the knowledge economy.

Singh listed out areas like computerisation of the tax dministration as possible investment opportunities. He asked the IT major to build a long-term relationship with the country.

Though Palmisano did not commit anything, sources said, he assured Singh that IBM would work closely with the government to increase it presence in the country. Like his previous visit to India last summer, Palmisano's trip  is a low-key affair. During his visit in May 2003, he had visited Bangalore.

IBM India executives remained tight-lipped about his trip and refused to divulge his itinerary citing company policy. Palmisano, who was named chairman at the start of 2003 after being promoted to chief executive officer in 2002, is expected to visit IBM India's headquarters in Bangalore.

The IBM chief told the prime minister that the company intends to increase its headcount further, after having already trebled it during the last 12 months.

The company's Indian subsidiary, IBM India Ltd, intends to set up a software development centre at Kolkata and another unit at Dharwad in Karnataka.

The company is exploring the possibility of expanding its software development and research and development operations in the country.

In addition to the manufacturing facility in Pondicherry, IBM has an e-business software centre at Gurgaon. It also runs four facilities in Bangalore and a software development centre in Pune.

The company operates the India Research Laboratory in Delhi. This April, IBM had acquired Daksh e-Services, the third biggest call centre in India, in a deal estimated at around $150 million.

Palmisano also meets Maran

Palmisano, also met Union IT and Communications Minister Dayanidhi Maran to discuss his company's expansion plans.

"It was just a casual talk. He discussed IBM's expansion plans in India with me. They have a lot of plans for India. He had met Prime Minister Manmohan Singh yesterday. They have ambitious plans for India," Maran told reporters on the sidelines of a function in New Delhi on Thursday.

However, Maran declined to discuss the details of the meeting.

During his recent visit to the US, Maran met a number of IT bigwigs and invited them to India.

This is Palmisano's second visit to the country in the last one year.

IBM has significant operations in the country with a presence of about 20,000 employees. It has plans to make India its hub for the South Asian operations and has made major investments in the country.

The company remained tight-lipped about Palmisano's visit.

Additional inputs: PTI

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