IBM announces acquisition of US-based Neudesic; adds to India presence

IBM today announced the acquisition of Neudesic, a US-based cloud services consultancy specializing primarily in the Microsoft Azure platform, along with bringing skills in multicloud. This acquisition will significantly expand IBM’s portfolio of hybrid multicloud services and further advance the company’s hybrid cloud and AI strategy. Financial details were not disclosed.

The acquisition is of significance to its presence in India as well as more than half of Neudesic’s headcount is based in India across Hyderabad, Bengaluru and Kochi. Neudesic has a total headcount of 1,500 cloud and data experts.

Including Neudesic, IBM has acquired more than 20 companies -- 12 in IBM Consulting alone ---since Arvind Krishna became CEO in April 2020. Today’s news builds upon IBM’s prior acquisitions of cloud transformation capabilities, including Sentaca, SXiQ, BoxBoat, Nordcloud and Taos. Acquisitions is one of IBM’s strategies to invest in its hybrid cloud and AI strategy, expanding its cloud services technology, skills and capabilities to meet the growing demand of clients’ hybrid cloud needs.

Neudesic will add on to IBM’s consulting capabilities in the hybrid cloud and AI and also beef up its consulting focus as more and more deals are digital in nature. Analysts have been saying that digital transformation requires an architectural shift and working with tech partners right from the initial stage is important.

IBM has stated that it will be focusing on hybrid cloud play which it says is a $200 billion opportunity. For the December ended quarter the company reported that its hybrid cloud revenue grew by 16 per cent (constant currency) at $6.2 billion. For the full year revenue was at $20.2 billion.  

• IBM’s latest acquisition of Neudesic adds to India capabilities with 700+ people
• Neudesic is the 12th acquisition in the IBM Consulting space
• IBM expanded its CIC in Mysuru
• Expanded its BPO operations by setting up centre in Telangana
• Entered into 10-yrs deal with Bangalore International Airport

When asked what is the significance of India to IBM’s Consulting unit John Granger, senior VP, IBM Consulting in an exclusive talk with Business Standard said, “India is a very important region, both as a market as well as delivery base. India continues to be a really important part of our business from the delivery perspective. Majority of our delivery to our clients in IBM consulting is driven out of India, and we have a superb pool of talent there that we're continuing to grow. And we'll be continuing to invest in the skill sets across hybrid cloud AI, intelligent workflows, application modernization, and will continue to push those forward here,” said.

Granger further elaborated that the company has expanded its existing presence by opening up IBM Client Innovation Centre in Mysuru to support the company’s growth in the region and to help grow our hyper cloud and AI technology. IBM also expanded its business process operations in Hyderabad. “We have got a new centre in Telangana which is focused on BPOs across several domains such as finance, accounting, supply chain, HR, etc. With this IBM Consulting can help clients achieve their digital transformation goals,” added Granger.

For IBM consulting has always been a huge focus, but with newer technologies and clients looking for digital transformation, the company has been looking to acquire talent and capabilities that gives it an edge with hyperscalers such as Microsoft, AWS and Google.