(RTTNews) -  Tuesday, International Business Machines (IBM: News ) said that it has signed a five-year remote managed services agreement with Sandhar Technologies, an auto ancillary group based in New Delhi. The deal will enable the company to align its information technology initiatives with business priorities, thereby ensuring risk mitigation and substantial cost savings.

As part of the agreement signed in December 2009, IBM will manage IT infrastructure for Sandhar Technologies, helping the company focus on its core business while reducing capital expenditure. The scope of managed services includes server management and network & security management, which will be remotely carried out from IBM's Global Management Center in Bangalore.

"The business landscape is becoming increasingly competitive and volatile, implying the need for us to be nimble," said Arvind Joshi, chief financial officer, Sandhar Technologies. "Therefore, it is necessary for us to blend our high dependency on IT with business goals, which we feel should be entrusted to a partner like IBM who has demonstrated domain expertise and technology prowess," he added.

Sandhar Technologies, a USD$164 million diversified auto ancillary group, has 18 manufacturing plants and 3,200 employees. The company's product line includes automotive locking systems, plain and prismatic rear view mirror assemblies, sheet metal components, and clutch and brake assemblies.
Ashish Kumar, vice president and general manager, Global Technology Services, IBM India/South Asia, said, "The auto ancillary industry in India has tremendous growth potential. The domestic market players are beginning to perform a significant role in the global automotive supply chain and are relying heavily on IT to ensure operational efficiency and increase revenue. With our deep expertise in the global market, IBM will help Sandhar Technologies in its technology adoption roadmap and will bring to them industry knowledge that will enable them to be effective competitors in the global landscape."

According to an Automotive Component Manufacturers Association of India report, the turnover of the auto component industry was estimated at over USD$18 billion in 2007-08, an increase of 27.2% since 2002. It is likely to touch USD$40 billion, increasing India's share in the global auto component market from 1% to 3% by 2015-16. IBM has been enabling small and medium businesses - automotive companies included - across India with technology solutions that enable them focus on their core business while realizing cost efficiencies.

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