India to get $6 billion boost from IBM

By Michael Cooney, NetworkWorld.com, 06/06/06

IBM said it will invest $6 billion in India in the course of the next three years, adding to the $2 billion it has already spent there in the past two years.

Sam Palmisano, IBM’s chairman and chief executive, told a meeting of more than 10,000 employees in Bangalore, India hub: "India and other emerging economies are an increasingly important part of IBM's global success. IBM is not going to miss this opportunity."

IBM has about 43,000 workers in India, and is using the country as a base for offering services to its customers worldwide. IBM is also seeing the local market for its products and services pick up. Its revenue from the Indian market grew 55% last year and 61% in the first quarter of this year, as a number of large Indian companies adopted outsourcing as a business strategy.

The investment in India is part of IBM's strategy to grow its presence in emerging markets such as China and Brazil, both because these are attractive markets, and also because they offer vast pools of staff, Michael J. Cannon-Brookes, IBM's vice president for business development in India and China told reporters shortly after Palmisano's speech. "You can expect significant investments by IBM in those countries as well," he added.

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