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IBM lines up $6-b plans for India

Our Bureau

To expand facilities, set up more delivery centres


FUTURE'S INDIA: The President, Mr A.P.J. Abdul Kalam, and the IBM Chairman and CEO, Mr Sam Palmisano, in Bangalore on Tuesday. — G.R.N. Somashekar

Bangalore June 6

IBM Corp said on Tuesday that it would triple its investment in expanding operations in India over three years, recognising the country's growing dominance in the global outsourcing industry.

Addressing employees in Bangalore, Mr Samuel J. Palmisano, Chairman and CEO, said: "In the next three years, we will triple our investment in India from $2 billion over the last three years to nearly $6 billion."

India presents a good opportunity in terms of skills and expertise. "That investment will ensure that we make the most of the opportunities to grow this market, while it also enables IBM to fulfil its vision of becoming a global integrated company," Mr Palmisano said.

Over 10,000 employees attended the `IBM Employee Townhall' at Palace Grounds in Bangalore making it the largest employee event for IBM in the Asia Pacific region, while thousands joined via satellite in Delhi, Mumbai, Kolkota and Pune. The event was Webcast to over three lakh employees worldwide.

The President, Mr A.P.J. Abdul Kalam, the Chairman and Group Managing Director of Bharti Enterprises, Mr Sunil Bharti Mittal, and some 50 Wall Street analysts were among those present at the event, which was also attended by several ecosystem partners of IBM in the country.

Best in the world

Tracing the history of IBM in India, which was the first IT major to enter the country (in 1951), Mr Palmisano said that the country offered the best mind power and its knowledge workers have proved to be the best in the world.

India, as the fastest growing economy, would produce 21 million college graduates by 2010.

This would mean that the country would emerge stronger in the next decade, he said.

The increased investments would be used to set up new service delivery centres and creating the IBM systems and technology group innovation in the country.

Experience centre

IBM also plans to set up an `experience' centre in Bangalore and locate a telecommunications research and innovation centre at the India Research Lab; it will serve as a key resource to telecom clients.

IBM will also invest in the High Performance on Demand Solutions Lab (HiPODs), which connects IBM's top consultants, developers, engineers and researchers in India and around the world, said Mr Shankar Annaswamy, Managing Director, IBM India.

IBM India will expand facilities and headcount in the country according to the customer's requirements, Mr Annaswamy said, while refusing to give specific details.

In recent years, IBM has seen a massive ramp-up in India headcount, which has grown to 43,000 as of March 31, 2006 from 9,000 at the beginning of 2004.

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