Reduce the operating costs of IBM within three years, India will increase investment 6 billion

Local time on Tuesday, the world's largest computer services provider IBM announced that the company's future three investment in India will increase three times to $six billion, the company's goal is to India in the South Asian country will become the IBM company provides consulting services to the global science and technology base.

Company chairman and chief executive Sam Palmisano said that these investments will be used in India Bangalore construction service distribution center, India technology center and the construction of a IBM company to provide services to customers worldwide telecommunications research and innovation center. The chief executive also said he would increase the number of employees at the Bangalore service center, but he did not elaborate further.

Over the past three years, IBM has invested more than $two billion in India, and the number of employees in India has increased from an average of $nine thousand to $forty-three thousand. India has become the second largest operating base in the United States after the IBM company, the company's operations in the United States has reached more than one hundred and twenty-five thousand employees.

Held in India Bangalore IBM company meeting, chief executive officer to ten thousand employees and investment analysts said emerging markets in India and other developing countries has become an important part of IBM's success in the world. India President Abdul Karam (APJ Abdul Kalam) also attended the meeting.

At an annual analyst meeting in New York, the chief executive and other officials of the company briefed analysts on the company's global operations plan for next year and released a new investment plan for the company in India. The CEO said: "the new investment plan in India will ensure that we get more opportunities in this fast-growing market, enabling IBM to become a global integrated service company's dream. If we do not invest in India, we will not be able to get the skills and expertise of India, it is these skills and expertise to help our customers the best way to success. We didn't miss the chance."

IBM announced a new investment plan this year after other high-tech companies announced a similar investment plan. In December last year, the world's largest software maker Microsoft Corp announced in the next four years will invest $1 billion 700 million in India, the total number of employees will double. The world's biggest computer chip maker Intel has announced a $one billion investment plan, a week later, an expatriate team in India said it would invest $three billion to build the chip manufacturing plant in India, the factory will use Intel's competitors AMD technology, telecom equipment maker CISCO systems also plan for the next three internal India invested $one billion and one hundred million.

As early as 1951, the IBM company first started operations in India, IBM in India in 1970s because of opposition to the multinational group, the company temporarily stopped operating in the year before the beginning of the year did not start again. After 2003 there was a real opportunity for IBM to take India as a key base for providing support services to global customers. The company's strategy is to compete with low-cost service providers in India, which have seized many of IBM's global technology consulting services.

IBM company has established five software development center and provides consulting services to a global center in India, the center has hired due to low wage workers, not only help the company reduce the cost, also provides a new source of income for the company. The company's revenue from India is growing, and the company's revenue in India grew by an average of 50% per cent in the past two years as the company's revenues grew slowly. Last year, the company's revenue in India reached $510 million. But this is only a small fraction of IBM's $88 billion in revenue.