Less than three months after IBM bought out the Tata group''s in their joint venture Tata IBM, IBM India Limited has been formally launched. (see ). IBM was fully operational in India until it pulled out in 1977. Its second innings in the country started in the form of a joint venture with the Tatas, which lasted seven years.

Speaking at the launch in Mumbai, John Joyce, president, IBM Asia Pacific said, "India is a key emerging market for IBM in the Asia Pacific region. Our business in India has been increasing significantly as we continue to deliver world class solutions to our customers. We will continue to launch new initiatives in various areas, particularly in e-business". He said that the observation period is now over for e-commerce, and more and more organisations are adapting to it. It creates a level playing field for businesses with no differentiation for time or space.

"We will continue to leverage the enormous skill base that India offers, particularly in software and services, to help our customers globally," Mr Joyce added.

Ranjit Limaye, managing director and CEO, IBM India, outlined the plans for the company. He said that IBM would be adding about 1,000 people this year and will double its research personnel in India to 150 by 2001. In India, IBM is involved in research in voice recognition and in software and support services.  He said that IBM had the technology, in hardware and software, to provide end-to-end solutions.

Mr Limaye pointed out that IBM India would focus on key sectors like banking, manufacturing, processing, distribution, telecom, government and education, besides small and medium businesses. Over the next few months IBM will conduct road shows to demonstrate products and solutions for the small and medium sector in 16 Indian cities.

Education will be a key key thrust area for IBM in India. Its IBM ACE programme it has over 60 e-business education centres through franchisees across the country. It also has a partnership with Bhartiya Vidya Bhavan for computer education for matriculate and post-matriculate students.

IBM''s other commitment to the industry in India is through external partnerships with independent software vendors at its solution partnership centre in Bangalore. Here the vendors are provided with IBM software, support and skills to enable them to develop solutions. The company also helps the vendors market these solutions.

IBM also has a partnership with Siemens for outsourcing solutions, and a contract with Reserve Bank of India for cheque processing applications.

According to Mr Limaye, IBM is considering manufacturing and assembling PCs in the country. The company will start these operations soon at its unit in Pondicherry.

  also see : IBM buys Tatas' stake in Tata IBM