IBM Signs 5-Yr RMI Deal with Sandhar Technologies

by CXOtoday Staff    Feb 02, 2010

IBM has announced that it has signed a five-year remote managed services outsourcing agreement with Sandhar Technologies, an auto ancillary group based in New Delhi. The deal will enable the company to align its Information Technology (IT) initiatives with business priorities thereby ensuring risk mitigation and substantial cost savings.

As part of the agreement signed in December 2009, IBM will manage the IT infrastructure for Sandhar Technologies, helping the company focus on its core business while reducing capital expenditure. The scope of managed services includes server management and network & security management, which will be remotely carried out from IBMs Global Management Centre in Bangalore.

"The business landscape is becoming increasingly competitive and volatile, implying the need for us to be nimble. It is therefore necessary for us to blend our high dependency on IT with business goals, which we feel should be entrusted to a partner like IBM who has demonstrated domain expertise and technology prowess," said, Arvind Joshi, CFO, Sandhar Technologies.

Sandhar Technologies, a US $164 million diversified auto ancillary group, has 18 manufacturing plants and 3200 employees. The company’s product line consist of automotive locking systems, plain and prismatic rear view mirror assemblies, sheet metal components, clutch and brake assemblies to name a few. Unlike its peers in the industry, the company has relied on a long term IT strategy to ensure efficiency.

Ashish Kumar, VP and general manager, Global Technology Services, IBM India/South Asia, said, The auto ancillary industry in India has tremendous growth potential. The domestic market players are beginning to play a significant role in the global automotive supply chain and are relying heavily on IT to ensure operational efficiency and increase revenues. With our deep expertise in the global market, IBM will help Sandhar Technologies in its technology adoption roadmap and will bring to them best practices that will enable them to be effective competitors in the global landscape."

As per an Automotive Component Manufacturers Association of India (ACMA) report, the turnover of the auto component industry was estimated at over US $18 billion in 2007-08, an increase of 27.2 percent since 2002. It is likely to touch US $40 billion, increasing India’s share in the global auto component market from 1 percent to 3 percent by 2015-16. IBM has been enabling small and medium businesses automotive companies included - across India with unique technology solutions that enable them focus on their core business while realizing cost efficiencies.