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'We are closely watching BRIC countries'

August 14, 2007 12:27 IST
The vice-president & general manager of IBM Global Delivery, RAJESH NAMBIAR, happens to be the first Indian to become a member of IBM chairman Sam J Palmisano's Core Technology Team-a think tank that makes all the technology decisions within IBM. In an interview with Bibhu Ranjan Mishra, Nambiar explains, among other things, why global delivery is important to the company. Excerpts:

How important is global delivery network for IBM?

Global delivery today depends on the ability of organisations to connect with clients in various forms-in terms of delivering more business value to make a difference to the client's businesses. Global delivery even by itself is very much a critical component. It is pretty much the central theme within IBM.

What are the secrets of IBM's global delivery model?

Basically, three elements play major roles in deciding the global delivery footprints-to make sure that we have the right skill, economics (cost-arbitrage) and right political and business environment. It is no longer just about winning a contract and delivering it just to enjoy cost (labour) arbitrage.

Do you use your global delivery network, based on the client's demand or the technological expertise of different centres in various geographies?

IBM's global delivery network, from the application services point of view, is divided primarily into three clusters-The China cluster (includes China, Vietnam and the Philippines), Indian cluster (includes India, Egypt and Romania) and the Latin American cluster (including Brazil and Argentina).

Every time we win a new client, we have to take a decision that where should we get the work done. That's is a very interesting decision because it is decided based on several things including the capability of the delivery centres and the capacity from the point of view of getting the right talent.

Sometimes the specialisation depends on the language factor. For instance, we do lot of work for France in Vietnam, since it is easier to get French-speaking people there.

How do you view emerging markets?

Our technology team is very closely watching all emerging markets including BRIC countries. While pitching for a particular deal, we bring to the clients the same level of our global expertise. We understand the technology, the global trends and have a very good understanding of the local market. This is the reason why most of the large deals in India are going to IBM.

Bibhu Ranjan Mishra