IBM is in a great hurry to expand its operations in India and it seems that the company is running for the 100 meter sprint gold in the Olympics. IBM has increased its employees very fast and just two and a half years ago, the company had only 9,000 employees here. The current figure is 43,000. The motive is clear- India has very cheap workers available compared to North America and Europe. To give you an idea about IBM's engagement in India I am quoting from a report of BusinessWeek Online:
IBM is taking the Indian market very seriously and the company is gradually trying to get engaged into outsourcing in India. For example, in 2004, IBM purchased one of the pioneering Indian call centers Daksh for about $150 million. IBM kept the old management intact and thus IBM is gradually emerging as an important player of CRM (Customer relationship management) industry in India. With it, now IBM is serving many of its Fortune 500 customers and that is where I think that IBM is working very smartly. IBM bosses have also experienced the fact that Indian workers are capable of performing sophisticated research and they are surely the best bargain for money.
Really, I will not be surprised if after a few years, IBM totally moves all its operations to India. IBM has already tasted the delight of cheap but skilled labor in India. I wonder if they can go backward from here.
What do you think?
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