IBM Global Financing (IGF) is the world’s largest IT lender and has a client list that boasts of most Fortune 100 firms as well as organisations with as few as ten employees. With assets over S$36 billion, IGF delivers financial services to over 1,20,000 customers in more than 55 countries. In an email interview, Sapan Jain, country manager, IGF, IBM India/South Asia, tells SME World’s Shishir Behera about the company’s financing plans for Indian MSMEs. Excerpts:
Post-meltdown, enterprises are too cautious towards IT spend. How do you look at this changed scenario?
As the economy starts to rebound, business opportunities increase and new technologies like cloud computing gain traction, it?s the perfect time for enterprises, big and small, to consider new and innovative IT investments to help grow business. I must point out that IBM Global Financing has a complete portfolio of financing and asset management solutions to enable next generation innovation, including smarter infrastructure, green data centres, smart grids, health information technology and smarter transportation projects. By financing IT investments with IGF, enterprises of all sizes can increase their efficiency, and better manage cash flow and assets, by turning large upfront costs into customised and affordable monthly payments. This helps accelerate their ROI (return on investment), and preserve cash and credit lines for core business requirements while eliminating the risk of project delays and technology obsolescence.
How does IGF benefit the Indian enterprises?
By providing total financing solutions to credit-qualified clients?from financing green data centre to providing environmentally compliant disposal of retired IT assets?IBM Global Financing can help support a company?s green strategy in a way that cuts costs, increases cash flow, and better aligns upfront costs to anticipated project benefits. In addition, IBM Global Financing can facilitate smart financial decisions at every stage of the IT life-cycle–from the planning phase through equipment disposal.
What are IGF’s operational areas, and which are the geographies where it has a foothold?
As one of the world?s largest IT financier, IBM Global Financing has an asset base that, were it a bank, would place it in the top two dozen US commercial banks, delivering financial services to over 1,20,000 customers in more than 55 countries. We provide customisable lease and loan offerings to much of 90% of the Fortune 100, as well as small companies with as few as ten employees. Small and medium businesses and large enterprise alike can acquire the business and technology solutions through IBM Global Financing to create enhanced value and drive profits.
Where do you see India ten years from now, especially in innovation?
Certainly, India has fast emerged as a tech power in recent past. Growth in the Indian economy, right infrastructure, tech spurt, and the presence of a large talent pool are driving this. Innovation is the nation?s single greatest driver of competitive advantage, productivity, economic growth and societal change. It is important to keep the momentum up, since by innovating, we raise the standard of living for all.
There is a need to ?think collaboratively? and in a multifaceted manner, as this determines who wins and who loses. Innovation begins at the intersection of invention and business insight?and is made valid only when it results in significant business and societal value. We have led the world in terms of patent leadership for the past 17 years.
Can you elaborate a bit on IGF’s financing approach, how does it differ from the finance from banking?
Financing institutions are averse to unsecured loans. Many traditional sources of credit like are reluctant to fund IT, seeking additional collateral against loans and financing deals. Besides, banks and brokers generally do not possess sufficient IT industry knowledge to make accurate assessments of fair market values, and may cover their risk with increased financing rates. Banks offer relatively simple loan finance that is secured on a client?s assets. However, IBM Global Financing is more than a bank, as it delivers comprehensive, integrated, customised and affordable solutions to unique enterprise IT needs.
How do you look at the SME sector in India and how does IGF help it?
SMBs want the same thing as large enterprise clients: value and innovation. They’re also facing the same challenges as larger enterprises. What they lack is the resources to address those challenges. With the economy starting to rebound, it’s the perfect time to consider new and innovative IT investments to help businesses grow. IBM Financing Advantage, from IGF, offers affordable low-rate financing at competitive rates and flexible terms. These can help SMEs acquire the solution they need rather than the solution they can afford.
Can you elaborate on IBM?s India operations?
IBM Global Financing has been operational in India fore the last 10 years and has been serving clients of all sizes across the industry. IGF has three business lines:
Client financing: Focusing on offering leases and loans for IT procurement to IBM end-clients for direct or indirect transactions;
Commercial financing: Short-term financing (30 to 90 days) to tier-1 channel partner for IBM or some selected Vendor partners.
IBM Global Asset Recovery Services (GARS): GARS offers attractive buyback and most efficient, all-green disposal solution, using scalable, reliable processes that prevent re-use and recycling capabilities. GARS complies with applicable local environmental and disposal regulations and includes buyback at agreed prices, disposal of unusable equipment and data security. Using total disk over-writes, GARS may recover, recondition and reconfigure usable IBM equipment as IBM Certified Used Equipment which offers a great alternative solution for many a business and IT situations.