Mar 17, 2011

IBM signs 10-year agreement with Caparo India

IBM announced that it has signed a 10-year agreement with Caparo India, for the implementation of SAP ERP and outsourcing of datacenter infrastructure including managed services. Caparo chose to host the datacenter on IBM’s Power Systems in a cloud model over competitor HP systems because the IBM solution will lower its upfront investments up to INR 1 crore.

IBM Global Financing (IGF) will support the Implementation and Licenses at Caparo India to help them manage project investments efficiently and wisely. With this arrangement, Caparo India will be able to manage processes at its production plants better, improve customer service and focus on growth plans.

Caparo India offers solutions in designing, developing and manufacturing automotive systems, assemblies, modules and components for Indian automotive original equipment manufacturers (OEMs) and the engineering industry, including premium clients such as Maruti, General Motors, Ford, Honda, Tata Motors, Nissan and others. The company’s strategic decision to deploy a SAP ERP solution, replacing incumbent ERP, for all their manufacturing plants gives them improved inventory visibility across various sites and optimization of resources and cost.

IBM, with its end-to-end capability to handle client requirements -- from concept to delivery and transformational outsourcing -- will provide Caparo India with a variety of services, including ERP implementation, hardware deployment, hosting the datacenter, managed services contract, and financing. SAP ERP will bring better organizational efficiency and business process controls while the outsourcing of IT infrastructure will enable Caparo to focus more on business functions rather than IT management.

“Caparo works with some of the biggest automotive manufactures in the world. To support our continued business growth we needed a partner that could offer advanced technologies and global expertise in technology based services,” said Suneel Khanna, Director Finance & IT “While we looked at solutions from other vendors, IBM’s provided the most compelling offering to support us by owning entire project management as a single vendor for IT so that Caparo can focus on managing it’s core business more efficiently. IBM’s global experience has assured us of highest levels of SLA on server uptime. Also we would not need to hire or train new IT staff since the infrastructure management rests completely with IBM”.

Vivek Malhotra, Vice president, General Business, North & East region, IBM India/South Asia said, “This is a first of its kind implementation in North India Our financing policy helps clients acquire the IT solutions that their business needs in the most cost-effective and strategic way possible. Customers can choose from a variety of financing options to address their unique solution requirements and help manage the cash flow and assets”.

Experts predict manifold growth for the auto components industry in India, the second-fastest growing market globally. India, in auto sector, is turning to be a sourcing base for the global auto majors. As a result it is a booming time for OEM suppliers like Caparo India to grow their business too multi-fold and robust IT will become the backbone for operational success.

“Considering aggressive future business plans of Caparo, it was absolutely essential to have a robust ERP implementation and we hope that the expertise of IBM in Auto sector will be useful in achieving this” said Rajesh Prasad, MD & CEO, Caparo India.