IBM has said that it is plannning to open two new software development centers in Pune, India and Beijing, China to provide solutions to tough business problems.
IBM announced its plan to open two new software development centers in Pune, India and Beijing, China. These SOA (Service-oriented architecture) development centers will manage, deliver, and develop industry related business services to provide solutions to tough business problems faced by IBM clients. Thus, these centers will act as a foundation for a fresh & globally integrated development model to offer SOA based services, according to news published in Information Week.
Using SOA, a company can easily develop new business related services across its existing infrastructure. For instance, a business related service could track inventory via manufacturing, supply, payment business process & design. SOA solutions will help companies in managing business processes with no concern over technology constraints. SOA services industry is estimated to reach US$ 160 Billion by 2008.
IBM's China operations are comparatively smaller than India. IT has around 7,000 services staff in China & over 40,000 employees in the Indian subcontinent. However, IBM is seeing huge growth prospects in China.
"Some U.S. and European firms are already seeing outsourcing as a great opportunity in China. There is every reason to believe that the growth of China's outsourcing market will continue. Thanks to continued government support, investment from foreign companies, and strong demand from Japan! Moreover, the entry of more western and Indian companies should serve to accelerate the industry's growth," as per the pre-published report "Opportunities in Chinese Software Industry (2007)" published by RNCOS, scheduled for release in early 2007.
Also, IBM is partnering with Lehman Brothers, a US investment bank, to launch an investment fund in China worth US$ 180 Million, targeting public & private firms in technology, biotech, communications & financial services.
IBM is putting its money on China to refresh its top-level growth that has been comparatively stagnant in recent past. With GNP (Gross National Product) estimated to grow by 7.5% every year within next 5 years, China is likely to become third biggest economy in the world by 2010.
Related Market Research Reports:
Global Portable Electronics Market
Chinese Consumer Electronics Market till 2011
Semiconductor Industry (2007-2010)
