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IBM Triples India Investment
Staff Reporter -- Electronic News, 6/6/2006
IBM announced on Tuesday that it would triple its investment in India to $6 billion over the next three years as the country becomes a cornerstone in the computer service superpower's global network.
The investment is the largest sum ever committed by a U.S. company to India.
At the company's largest-ever gathering of IBM employees in India, IBM CEO Sam Palmisano said the investment would be used for several initiatives. The company will build service delivery centers in Bangalore to automate IT service delivery, and a new telecommunications research and innovation center will be set up to service IBM's telecommunications customers worldwide. IBM plans to improve its existing high-performance on-demand solutions lab in Bangalore, and will build an innovation center in the city.
Big Blue also outlined plans to spend money on developing the skills of Indian students.
"India and other emerging economies are an increasingly important part of IBM's global success," Palmisano said at the gathering in Bangalore, the epicenter of India's current technology boom.
Palmisano added that IBM plans to increase its workforce in Bangalore, but did not provide specific numbers.
India is IBM's second-largest base of operations in the world. The company's U.S. workforce is comprised of 125,000 of IBM's 330,000 total employees. In the past three years, the company has invested more than $2 billion in India and hired more than 35,000 staff, bringing the country's total IBM workforce to 43,000.
IBM is certainly not alone in expressing a burgeoning interest in the subcontinent. Tech giants Dell, AMD, and Intel have all announced plans to increase investments in India in recent months.
"If you are not here in India, making the right investments and finding and developing the best employees and business partners, then you won't be able to combine the skills and expertise here with skills and expertise from around the world," Palmisano said. "I'm here today to say that IBM is not going to miss this opportunity."
