IBM setting up software development centres in Pune, Beijing

Mumbai: IBM is extending its global operations with new software development centers in Pune in India and Beijing in China. The centers will focus on providing customised software services for customers around the world, including those in the US.

Both the centres, which are based on service oriented architecture (SOA) would serve as the foundation of a new, globally integrated model for delivering services worldwide for the company, IBM said in a statement.

The SOAs feature standards-based software components that allow customers to easily connect and re-use various business applications and services. IBM says it expects the market for SOA-based services to reach $160 billion by 2008, the statement said adding, about 500 IBM SOA experts would be deployed in each of the centres.

IBM did not disclose the level of financial investment it's making in the Pune and Beijing facilities.

The Pune center will focus on building SOA systems for the insurance and healthcare industries while the Beijing facility will create systems for the banking and state and local government markets.

The Beijing center would also create software architectures that will power the child welfare systems for four US states, Jeby Cherian, head of IBM's global solutions delivery for India, said without identifying the states. The Pune and Beijing facilities will act as satellites of the Bangalore center, he added.

The announcement marks the latest step in IBM's plan to locate business software development activities in low-cost regions with an abundance of IT talent.

Earlier this year, the company opened a major new facility in Bangalore, from which IBM employees are designing business technology architectures and related software for customers worldwide.

IBM currently maintains a services staff of 7,000 in China. By contrast, the company employs more than 40,000 workers on India. IBM, however, is planning big increase in the size of its China operation.

IBM, meanwhile, is partnering US investment bank Lehman Brothers to launch a $180 million fund that will invest in mid-stage and mature Chinese businesses.