IBM Daksh More Than Triples Employee Base in India to 20,000 in Two Years

IBM Scales Up Its Business Transformation Outsourcing Capabilities in India

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NEW DELHI, INDIA - 30 May 2006: IBM today announced that its subsidiary company, IBM Daksh, has grown to 20,000 employees, up 234% from 6,000 employees at the time of acquisition in April 2004. IBM Daksh provides Business Transformation Outsourcing solutions and services for IBM clients around the world, and is a key component of IBM's process transformation and management operations.

IBM India, which is the largest Multinational Company in the country, now has around 43,000 employees, up from 9,000 employees at the beginning of 2004.

A key factor fueling client demand for IBM Daksh services is the ability to integrate the complete spectrum of IBM capabilities across research, development and consulting, distilled into high-value solutions and replicable tools. For example, IBM Daksh has successfully leveraged IBM's Research capabilities to develop a text-analytics tool called ProACT, that automates the analysis of customer satisfaction surveys to improve the real-time effectiveness of an email-based customer help desk operations. The tool, currently being piloted by several companies in the telecommunications industry, has been deployed at IBM Daksh to automate 30-50% of the workload of 120 subject matter experts.

"IBM Daksh has grown dramatically over the last two years as a result of tremendous demand for our ability to deliver high-value transformation services that leverage many of IBM's unique skills such as consulting and Research," said Pavan Vaish, Chief Operating Officer IBM Daksh. "This acquisition is indicative of IBM's strategy to move into high-value markets where we can help our clients innovate their business processes and operations, rather than competing for the shrinking profits in the commodity markets of the old IT industry."

Growth in the employee base at IBM Daksh has been fueled by growing outsourcing business from Fortune 500 clients. Recent initiatives include innovating and managing business operations for a leading US health insurance company, a UK Internet Service Provider, a global consumer goods leader, one of the world's top telecommunications company, and a major airline. IBM Daksh has deep industry expertise across a range of industries including Travel, Financial Services, Telecom and Utilities and across various competencies such as Finance & Accounting, Human Resource Management, Customer Relationship Management and Back office support.

For each of these clients, IBM Daksh is committed to delivering both operational transformation and improvement, and cost efficiencies. For example, for D&B, IBM Daksh helps innovate and manage more than 100,000 customer relationships, as well as selected financial operations and other business functions. Already, IBM Daksh has helped deliver double digit cost efficiencies as well as significant improvements in customer service and satisfaction with the development and deployment of innovative new workflow solutions.

Providing opportunities to work on a myriad portfolio of clients and path breaking business solutions, IBM Daksh has built a world-class workplace to attract, retain and develop talent. IBM Daksh was recently recognized by Dataquest -- IDC as the # 1 employer in the BPO industry in India, and ranked as the 'Best Managed Outsourcing Vendor in the World' by the Black Book of Outsourcing.

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