IBM inks $15-million deal with Eureka Forbes

BANGALORE - IBM has signed a $15-million (Rs.71-million) outsourcing deal with Eureka Forbes Ltd., a leading Indian health and hygiene solutions firm, to provide business consulting, package implementation, infrastructure and application management services for five years, the global IT major said Monday. As part of the engagement, IBM’s India subsidiary will take over the IT staff of Eureka Forbes and leverage its research expertise to help improve its customer’s revenue with new tools.

IBM India managing director Shankar Annaswamy said the global IT firm would transform Eureka’s business and facilitate innovation to deliver greater customer value, business growth and operational efficiency.

As Eureka’s philosophy is to be a friend for life, we believe that we could bring in expertise in business transformation and innovation to create a healthy, happy and safe life for millions of Indians, Annaswamy said in a statement here.

Eureka managing director Suresh Goklaney said the agreement was first-of-a-kind for IBM in the Indian consumer durable industry, especially in the health and hygiene solutions segment.

The risk-reward model of engagement will increase product revenue, optimise inventory holding, reduce expenses across the board and increase revenue from annual maintenance contracts, Goklaney noted.

The Rs.10-billion (Rs.1000-crore) Eureka will work with IBM to enable its sales force go for “intelligent knocking” leveraging the customer relationship management (CRM) solution and handhelds being piloted for the Mumbai region.