IBM’s Growing Outsourcing Business in India
IBM lands another big outsourcing deal with a company in India; this time with PepsiCo.
IBM continues to reap outsourcing rewards from its growing presence in India. This week, IBM said it inked a deal with PepsiCo India to provide services for the drink maker’s financial processes. The new deal builds on a five-year business process outsourcing (BPO) agreement IBM and PepsiCo India signed in 2009.
You may recall last month IBM hooked a mega, 10-year deal with Caparo India, an Indian manufacturer of automotive systems. In that outsourcing agreement, IBM is providing enterprise resource planning (ERP)and data center infrastructure services. You can read more about that here, in this blog.
Under terms of the PepsiCo India deal, IBM’s Global Process Services business will help PepsiCo India centralize its financial processes across multiple plants, office locations and business units under a single shared services operation. The agreement covers payments, revenue and reporting processes and will help PepsiCo India enhance governance, drive standardization and simplification and create value through increased productivity. According to the two companies, the agreement is the first example in the Indian market of a company of the size and scale of PepsiCo India making the strategic decision to outsource its accounting processes.
In a prepared statement, PepsiCo India CFO Kimsuka Narasimhan said that PepsiCo India chose IBM “to run our transaction and accounting processes... It will help us enhance our governance while providing innovative solutions through superior analytics and productivity opportunities.”
Like I said back when I wrote about the Caparo India deal, I think IBM’s wins in India are interesting. The company is pushing for outsourcing relevance, market- and mind-share in India – a country that has dominated the outsourcing market for some time. I mean, consider this: IBM has more than 60,000 employees in India, according to this article in InformationWeek. And by the look of these wins, it looks like IBM is getting what it’s aiming for.
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