The domestic business, in turn, was driven by systems sales that grew 20% and now accounts for 40% of the total turnover. It came from a new-found aggression. It bid competitively, and barring PC servers, ASVs declined across all segments that did well and were mostly lower than the ASV of closest competitor HP.

As the overall personal workstation market declined 1% in unit terms, IBM unit sales grew sales 233% to 3,500 units, accounting for 50% of the entire market. In unit terms, PC servers grew 33% and PCs 39%, while domestic services was up 32% in value terms. The domestic services business is handled by IBM Global Services (India)’s domestic division that works closely with IBM India backing up its systems sales with services and taking up SI work for key customers. The only segment that performed poorly was the Unix server business, which was down 27%, compared to a healthy segment growth rate of 21% during the fiscal.

Essentially, the company capitalized on its existing verticals—BFSI and manufacturing—with a growing presence in others like pharma, education and BPO. The big gap—a year after it set up a special business unit, the telecom sector still evades it with possibly just one high end server deal that it won against HP.

The big surprise—completely flat exports from IGSI (exports), when peers like Infosys (39%) and Wipro (29%) have had a relatively better year. Given that the company also hired around 17% more staff during the year, it also spells falling productivity per employee.