Big Blue Getting Bigger in India

Ann All

While sales in India make up a "negligible" piece of IBM's global business, that appears likely to change -- and soon -- as the company advances an ambitious, three-year plan to pump $6 billion into its Indian operations.


The funds will be used to establish new research facilities and expand existing outsourcing centers, according to an Associated Press report published in Forbes. Big Blue recently sent CEO Sam Palmisano to India for a confab with Indian clients and business leaders.


The company also will likely continue its recent hiring streak, adding to an Indian workforce of 53,000, second only to the U.S., where it employs 125,000 workers.


IBM has already notched some wins in India, notably a 10-year, infrastructure management contract with cellular provider Idea Cellular, valued between $600 million and $800 million, according to the AP.


IBM sees the move as necessary to keep up with Indian service providers like Infosys and Wipro, as well as tough multinational competitors like Accenture.


IBM certainly isn't the only IT firm spending big bucks in India. Other foreign investors include Intel and Microsoft.

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