IBM triples investment in India

IBM's investments will build out its outsourcing business and expand local R&D

IBM will boost its investments in India to $6bn over the next three years, the company said, marking a 200 per cent increase from the past three years.

"This investment will ensure that we make the most of the opportunities to grow this marketplace, while enabling IBM to fulfil its vision of becoming a globally integrated company," IBM chief executive Sam Palmisano said at a company event in Bangalore.

The additional investments will build out IBM's outsourcing business as well as expand local research and development.

IBM also plans to create Service Delivery Centres to offer a new platform for online services that should increase reliability and scalability without requiring additional staff.

The technologies will also be rolled out in service outsourcing centres in other regions.

Big Blue is expected to set up an India-based office for its Systems & Technology Group where researchers will work on projects such as Linux development.

A third new research facility is set to focus on applications for the telecoms sector by exploring advanced analytics to identify useful information in call centre records and networking technologies.

IBM's investment signals a further advancement of the outsourcing trend. The company had only 3,000 employees in India in 2003, but is now the largest foreign employer with 43,000 workers.

The growth was caused in part by IBM's acquisition of back-office outsourcing provider Daksh eServices.

Computer maker Dell said in March that it would double its staff in India to 20,000 over the next three years. 

Microsoft revealed in December that it would invest $1.7bn in the country over the next four years, while Cisco's investments in India are set to total $1.1bn over the next four years. 

But proving that the road to India is not without obstacles, Apple closed an Indian support and development centre after only two months. The facility was set to employ 600 workers.