IBM chief to review new investments plans in India

IBM chief to review new investments plans in India
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First Published: Tue, May 08 2007. 03 57 PM IST
Updated: Tue, May 08 2007. 03 57 PM IST
By AP
New Delhi: IBM Corp. chief executive Samuel Palmisano met with Indian business leaders and executives from client companies on 8 May as he wrapped up a two-day trip to review the company’s new investments and expansion.
IBM is investing $6 billion (Rs24,503 crore) to set up new research facilities and expand its outsourcing centres in India. The company has hired thousands of engineers and software professionals since Palmisano unveiled the three-year investment plan last June.
Company officials declined to immediately comment on the visit and Palmisano avoided journalists after addressing Indian business leaders at a close-door meeting.
IBM sees India as a key base to support services for clients around the globe, helping the company fend off competition from low-cost Indian service providers that are increasingly grabbing worldwide technology consulting business. It also wants to seize the opportunities in the fast-growing India market.
Currently, sales in India form a negligible part of IBM’s global revenue but the Armonk, New York-based company is beginning to win large orders from Indian companies.
In March, it won a 10-year contract to manage the information technology infrastructure of Indian mobile company Idea Cellular in a deal valued between $600 million and $800 million.
IBM now employs about 53,000 people in India, second only to the US, where it has about 1,25,000 employees. Most of them are employed at the company’s outsourcing centres that cater to IBM’s clients worldwide.
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First Published: Tue, May 08 2007. 03 57 PM IST
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