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IBM has signed first-of-its-kind agreement in the consumer durable segment with Eureka Forbes Ltd for end-to-end business transformation and information technology (IT) outsourcing. Valued at $15 million, the deal is based on a unique risk-reward model and will help Eureka Forbes achieve growth by aligning its IT to business strategy. IBM will provide business consulting, package implementation, infrastructure and application management services.
This will help Eureka Forbes increase its focus on customer satisfaction, greater profitability and enhanced collaboration with its sales force and dealer network. The deal will also involve transition of Eureka Forbes’ IT staff to IBM.
IBM will put in place collaboration platforms like employee self-service, business partner management system and knowledge management system. It will also provide helpdesk, server management, security compliance and network management services, and drive efficiencies in IT infrastructure.
The five year agreement will help Eureka Forbes achieve four key objectives: Increase product revenue, optimize inventory holding, reduce selling, general & administrative expenses and increase revenue from annual maintenance contracts.
Talking about this strategic relationship, Suresh Goklaney, Vice-Chairman and Managing Director of Eureka Forbes, said, “At Eureka Forbes, the customer has always been our most important focal point. We believe IBM’s global expertise in the consumer durable industry will enable Eureka Forbes to even more aggressively achieve its business goal.”
Forbes will work with IBM to enable its sales force for ‘Intelligent Knocking’ leveraging the Customer Relationship Management (CRM) solution and handhelds that are currently being piloted for Mumbai region.
