India: From Emerging to Surging

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India From Emerging to Surging IBM in India
C. Mohan, PhDIBM Fellow and IBM India Chief
Scientist IBM India, Bangalore
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India A Dynamic Emerging Economy

• 5000 years civilisation, 1.1 billion people
• 325 languages - 18 official, 29 states, 5
  territories
• Worlds largest democracy, Numerous religions
  Prime Minister has PhD in Economics (Oxford).
  President is an eminent aerospace scientist with
  30 honorary doctorates. Both belong to
  minorities!
• 142 million periodical subscriptions
• About 75 recognised political parties
• 4th largest economy
• 3rd largest standing army
• 2nd largest pool of scientists engineers
• Largest English speaking country
• Literacy Rate 65.38
• By 2015, a working population of 823 million
• 300 million middle-class, exceeds population of
  USA

The myriad festivities of India reflect the
spirit and character of India youthful, vibrant,
diverse celebrating life in its every color!
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Indias transformation is underway

1. The social fabric is changing
2. Industries undergoing radical transformation
3. India is driving global mission-critical
   innovation
4. Government continues to push the growth agenda
5. Competition is intense and of a different kind

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India Marketplace Understanding IBM Presence

• All industries growing at over 10 CAGR
• Emerging sectors (e.g. Retail ITES,) growing at
  over 30

• Changing social fabric
• Sustainable economic growth
• Industry transformation
• Indias people are its source of innovation

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Country Dynamics
Domestic Opportunity
Challenges Competition
Global Leverage
IBM India Presence

• Inadequate infrastructure
• Coalition politics
• Untested labor laws
• Supply-side competition (MNCs Domestic)

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• From cost arbitrage to high value
• Emerging global innovation and RD hub

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Global Missions
Domestic Ops
Global Delivery
Labs
GSDCGBSC
IBM TCS
Domestic
IRL
ISL
AMS
BTO
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IBM India Extensive operations across the
country
IBM India Business Units IBM India Business Units
Application Management Services/GBS
Business Process Transformation Services
India Software Labs and IBM TCS
Global Service Delivery Center
India Research Labs
Domestic Operations/Others
Delhi
.
Kolkata
.
.
Mumbai
Pune
Hyderabad
.
Chennai
Bangalore
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Problems/Issues

• Pockets of good database research work IISc, IIT
  Bombay, IBM IRL, by mostly returnees from the
  US
• Very poor CS PhD production rate by Indian Univs
  (2004 36 in India, 3300 in China!)
• Most good undergraduates from IITs go abroad for
  studies or go for domestic jobs/MBAs
• Not enough junior/senior Indian researchers or
  product technologists from US are returning to
  India, unlike in the case of China, Taiwan,
  Korea,
• IITs have a hard time recruiting good faculty
  with deep research focus
• IBM India encouraging employees to go for PhD/MS

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Highly Recommended Reading
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Highly Recommended Reading
August 22, 2005