India has over 35 million small and medium businesses and (SMBs) they are bringing

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in big business for IT firms, even during the downturn. Ramesh Narasimhan, director - general business, IBM India/South Asia speaks to Thanuja B M. Excerpts:

n How was 2009 in terms of demand and IT investment?

None of us could have anticipated the economic challenges that we’re currently facing. Every crisis, however, offers opportunities for those who seize them. This is a time when forward-looking businesses and government institutions achieve leadership through investing in 21st century solutions to old problems. Several customers have used the downturn to become competitive. Many firms have invested money in IT across large enterprises and SMBs. We expect this figure to increase now.

n Is the kind of solutions being looked at by SMBs different from before?

There is a difference between investment for growth and that for competitiveness. Businesses are now looking at value for money and investing in technologies that will enable them to gain a competitive advantage in the market place. Hence, there is more interest from SMBs for solutions in business analytics or business intelligence, virtualisation, green IT and collaborative tools – these help firms become more efficient and competitive in the market.

n What kind of growth are you expecting from this segment?

We want to grow faster than the market. For instance, if the market in India is growing at 14 per cent, we would like to be in the 18-20 per cent range. We have seen strong traction in the SMB segment and our objective is to be the leader.

n Can you give some details on customers and reach?

Our client base probably runs into lakhs both directly and indirectly. IBM delivers its offerings through its own sales and marketing team and a network of 3,000 business partners organized in 8 local sales territories in India. The launch of our SMB operations in 14 cities in recent years has also helped us to make inroads into tier II and III cities.