IBM makes a $6-billion investment commitment in India

Our Corporate Bureau
06 June 2006

IBM's revenues in India have been rising steadily — analysts estimate that its India revenues in 2005 were between $1.1 billion and $1.4 billion.

The chairman and chief executive officer of IBM, Samuel J Palmisano, speaking to the largest-ever gathering of IBM employees in India, today announced IBM expects to nearly triple its investment in India over the next three years.

Palmisano spoke before 10,000 employees gathered in Bangalore and via satellite to thousands of other employees in Delhi, Mumbai, Kolkata and Pune. With more than 43,000 employees in 14 cities, India is IBM's largest country organisation outside the US. Present at the Bangalore meeting was President A P J Abdul Kalam.

IBM already has five software development centres in the country and it intends to increasingly shift high-value services such as supply chain management and financial services to Bangalore, thus benefiting from low cost manpower. It will now invest in automating IT services and provide clients with hardware information and products under one roof.

Palmisano said that IBM would invest in developing service delivery centres in Bangalore, and create a telecommunications research and innovation centre for at its laboratory in Delhi for global clients.

The proposed investment will enable it to make the most of opportunities to expand the Indian market. It is looking at expanding its services, software, hardware and research operations in India and increasing its headcount.