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IBM eyes expansion in China

The world's biggest computer-services firm plans to expand in China taking advantage of its robust growth.

india Updated: Aug 23, 2006 15:57 IST

The world's biggest computer-services firm, IBM said on Wednesday it could open four offices annually in second-tier Chinese cities in coming years to take advantage of robust growth and a deep talent pool.

Any expansion would come after IBM's Asia-Pacific office completed its move to Shanghai from Tokyo this year, attracted by vibrant growth and deep talent pools in China.

The move also brought the company closer to India, IBM's fastest growing market.
"We set up four new offices last year," Michael Cannon-Brookes, vice president for business development in China and India, told said on Wednesday.

"And that pace is sustainable in the near term."

International Business Machines Corp. Of New York had 22 offices in China at the end of last year. It employs 43,000 staff in India, the centre of the world's software services industry, and 7,300 in China, the world's manufacturing hub.

"That's why I'm in Shanghai," said Cannon-Brookes.

IBM's business in India grew 61 percent in the first quarter from a year earlier as telecoms, banking, insurance and services sectors bought computer hardware and services to spur expansion.

Its revenue in China rose 15 percent. The company did not give sales figures for individual countries, he said.

IBM, which derives about half its revenue from information technology consulting and outsourcing, has made India a global delivery hub for software needs and client services.