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IBM Opens Another Center In India

June 14, 2005

In offshore-related news, IBM today opened its fifth software development center in India, reported Associated Press, with announced plans to hire 1,000 programmers in the new center by the end of this year.

Presently, IBM employs 23,000 people in Bangalore, Pune, Gurgaon and Calcutta, where the company’s four Indian centers are located.

See AP’s coverage below.

IBM Opens Fifth Software Center in India

HYDERABAD, India -- IBM Corp. on Tuesday opened its fifth software development center in India and announced plans to hire 1,000 programmers in the new center by the end of 2005.

"We are very excited by the skills and talents and the productivity that come from our team in India," Frank Kern, IBM's vice president for Asia-Pacific said, inaugurating the center in the southern Indian city of Hyderabad.

IBM currently employs 23,000 people in its four Indian centers at Bangalore, Pune, Gurgaon and Calcutta.

Companies such as IBM and Hewlett-Packard use the offshore business model to provide low-cost software development services to their clients worldwide. India is the world leader among a handful of countries where wages are low and skilled workers plentiful.

Kern also said India is rapidly becoming an important market for IBM's services.

Last year, the Armonk, N.Y.-based company acquired Indian back-office services firm Daksh eServices for an estimated $150 million.

IBM, long known as a computer maker, has increasingly become a services company and sold off its personal computer business to Chinese firm Lenovo in a deal worth $1.75 billion.

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