DQ Top 20 Rank 11 - IBM India Significant growth as AI adoption rises and strategic focus strengthened 

IBM’s hybrid cloud architecture has gained significant adoption among enterprises. 

In 2022, IBM exhibited substantial growth and achieved a revenue of US$60.5 billion, along with generating US$9.3 billion in free cash flow. The company’s revenue growth of 12 percent at constant currency was fueled by delivering client value, and more than 50 percent of IBM’s total revenue now comes from its solid and growing recurring revenue base. IBM’s strategic focus areas include hybrid cloud and AI, which are driving greater productivity, faster insights, better decision-making, and improved employee and customer experiences. 

India remains the bright spot 

AI adoption is gaining momentum in India’s IT industry. Approximately 57 percent of IT professionals in the country state that their organizations have actively implemented AI solutions in their business operations. This indicates a growing recognition of the value and potential of AI in driving efficiency, innovation, and competitive advantage. About 27 percent of organizations in India are currently exploring the use of AI. This suggests a significant portion of companies are recognizing the transformative potential of AI but are still in the early stages of understanding and evaluating its applications in their specific business contexts. 

In India, IBM reported a consolidated operating income of `22,703.1 crores, experiencing a YoY decline of 9.4 percent. The spin-off of the managed infrastructure services unit into a separate company contributed to the revenue decline, but improved performance across segments, in both exports and domestic business and growth in IBM’s addressable market in India helped mitigate the impact. Despite the decline, the company’s operating profit margins (OPM) remained healthy at 18.9 percent in FY2022, an increase from the previous year’s 17.5 percent. 

Key wins 

• IBM's expands quantum network; collaborates with BosonQ Psi. 

• Intelligent Fashion Platform: Bestseller India and IBM Consulting 

• Airtel-IBM collaboration for secured Edge cloud services 

• IIT Madras joins IBM Quantum Network. 

IBM’s hybrid cloud architecture has gained significant adoption among enterprises due to its scalability, security, flexibility, and faster innovation cycles. The company’s container platform, with Red Hat at its core, has been embraced by clients like the Canadian Imperial Bank of Commerce (CIBC), resulting in accelerated application delivery. Infusing AI across business operations is another key aspect, and IBM has partnered with various organizations to automate processes and deliver enhanced customer experiences. 

Focusing on Research and Social Impact 

IBM Research remains dedicated to innovation in areas like hybrid cloud, data and AI, automation, security, semiconductors, and quantum computing. With partnerships and open collaboration, IBM aims to solve urgent business and societal challenges. IBM’s commitment to environmental, equitable, and ethical impact is evident through its progress towards net-zero operational greenhouse gas emissions by 2030 and efforts to promote diversity, inclusion, and education. 

The company’s engagement model is more streamlined, and its ecosystem is strengthened through partnerships with major technology players like SAP, Microsoft, and AWS. IBM’s workforce is empowered to drive progress by applying innovation to real-world problems, delivering value to clients, and contributing to a better working world. As IBM continues to prioritize productivity, simplicity, and high-performance culture, it aims to remain the catalyst that addresses the world’s challenges and makes the world work better. 

IBM’s initiatives in India demonstrate the company’s commitment to driving innovation, fostering collaboration, and empowering the workforce and students with cutting-edge technologies and knowledge. Through strategic partnerships, expansion of its quantum network, and investment in emerging technologies, IBM continues to play a significant role in shaping India’s technological landscape and supporting its digital transformation journey. 

While India has emerged as a major hub for STEM talent, the fast-changing pace of technology makes it crucial for current and aspiring STEM professionals to have access to tools and resources that can help them build the right skills. 

In a recent survey conducted by IBM, cost emerged as a crucial consideration when choosing digital credential programs in India. The survey highlights the importance of affordability in shaping the adoption of digital credentials, which play a vital role in enhancing skill development and employability. As digital credentials gain prominence in India’s education and job market, this survey provides valuable insights for educational institutions, employers, and policymakers to design effective and accessible credentialing programs.  

Rob Thomas, senior vice president of global markets at IBM, says the next decade is India’s decade in IBM. “Look at the demographics, investment growth, it’s all here in India,” Thomas, part of chairman & CEO Arvind Krishna’s leadership team, told us on a recent visit to the country.  

“While India has emerged as a major hub for STEM talent, the fast-changing pace of technology makes it crucial for current and aspiring STEM professionals to have access to tools and resources that can help them build the right skills,” said Sandip Patel, Managing Director, IBM India. “Through IBM SkillsBuild, we partner with leading universities and institutions in the country in their quest to create a future-ready workforce and provide opportunities to more diverse groups.”