Emerging countries big contributors to IBM's revenue
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The emerging nations of Brazil, China, India, and Russia together represented five percent of IBM's second-quarter revenue, and the vendor is looking for those revenue levels to double over the next four years.
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Lenovo Group&#39;s takeover of IBM&#39;s personal computer business is a giant step in a multibillion-dollar foreign expansion by China, which is buying auto, television and telecommunications companies abroad.
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IBM Corp.'s expansion in developing countries shows no sign of relenting. The technology company revealed Friday that it now has 73,000 employees in India, almost a 40 percent leap from last year.
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A weaker U.S. dollar should help  IBM IBM.N exceed Wall Street forecasts when the company  reports year-end results next Tuesday, boosting profits from  overseas sales for the world's largest computer maker.
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Businesses in Europe, Asia can net bucks for outdated computer equipment, company says.
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IBM Corp. expects about $1 billion in revenue from India, as the company&#39;s hardware and services business in the local market soars.The company made $700 million in revenue from India last year, said a company spokesman Monday. In the first three quarters of this year, the company posted revenue growth of 39 percent over the previous year. &quot;At the current growth rates, we expect revenue of $1 billion for the year,&quot; the spokesman added.Unlike Indian outsourcers who have mainly focused on more lucrative contracts abroad, multinational services companies like IBM have focused on the growing Indian outsourcing market.IBM India&#39;s contribution to IBM&#39;s global revenue is higher if the revenues from services delivered from India to global customers are also included. These are higher than domestic revenue and growing faster, said the IBM spokesman who did not give exact figures. This is however included in the revenue of the country in which the services have been contracted, and are not reflected in IBM&#39;s India revenues, he added.India is a key hub for the global delivery of services by IBM, as the company takes advantage of the country&#39;s large pool of skilled manpower.Reports, including in The Wall Street Journal, quoted an IBM official in the U.S. as saying that the company has increased its staff in India to 73,000 this year. The IBM India spokesman was unable to confirm this data immediately, but he confirmed that the company had 53,000 staff in the country at the end of last year.Although the company does not break down the number of staff it has in offshore software development and services in India, most of the new additions are likely to have been made in the company&#39;s outsourcing operations based in India, with the rest of the additions in sales and marketing.The expansion by IBM in India comes even as staff availability there has gotten tighter and salaries are on the increase. India is still attractive to foreign companies to set up software development and services subsidiaries or outsource work, as salaries are still competitive and the talent pool is large, said Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International Inc (TPI) in Houston, in an interview last month.
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HELSINKI, Sep 13 (IPS) - Four developing countries -- China, India, Brazil  and South Africa (CIBS) -- are poised to become new southern  engines of global economic growth with increasing potential to  provide prosperity to other developing countries, said prominent  economics researchers here.
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US computer giant IBM reports better than expected profits thanks to strong sales and the beneficial impact of the weak dollar.
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Emerging economies are now big enough to help but not save Western giants.
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The tech giant gives a strong outlook on the back of booming international sales
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(InfoWorld) - Swelling demand for high-end systems in the fourth quarter pushed the global server industry to its highest annual revenue since the market peaked in 2000 as IBMÂ and Hewlett-Packard held onto their top rankings. The industry overcame yet another quarter of slumping unit shipments to notch a 5.2 percent rise in quarterly revenue compared to the same period last year, pushing annual industry revenue up 2 percent to $52.3 billion in 2006, according to an industry report released Monday by IDC. The revenue came from an unexpected sector. For the first time in 10 years, quarterly demand for midrange and high-end systems outstripped demand for volume servers. Compared to the same period last year, fourth quarter revenue for high-end systems rose 11.5 percent, compared to rises of 5.4 percent for midrange servers and 2.1 percent for entry-level. Despite the changing market, the players remained the same. IBM claimed the largest chunk of revenue with 32.8 percent market share, followed by HP at 27.2 percent. With 10.8 percent share, Sun has a slight lead over DellÂ (10.3 percent) for third place but is growing much faster, IDC said. Fujitsu/Fujitsu Siemens was the only vendor whose server revenue dropped in 2006 as it held onto its position in a distant fifth place. Those numbers were nearly identical to aÂ server industry report released last Thursday by Gartner. IBM said much of its success came from its 32 percent share of the large Unix server segment and from strong growth in its SystemÂ Z mainframe sector, which posted its highest quarterly revenue in eight years with $1.7 billion, according to a statement by Bill Zeitler, senior vice president and group executive for IBM's Systems & Technology Group. Despite that success, IBM's Z/OS recorded just 11.2 percent market share by revenue in the quarter, far behind Microsoft's Windows OS at 34.9 percent and the Unix OS at 33.5 percent, according to IDC. Linux-powered servers showed fast growth to reach 11.9 percent share. In comparison, Sun boasted that its results were strong in every sector, lead by total server revenue growth of 24.4 percent, more than four times the growth of its closest competitor, HP. Sun said its key driver was its Solaris Unix OS, which allows to company to scale from x86 to RISC-based systems and claim market growth in diverse market niches, said John Fowler, executive vice president of Sun's systems group in a statement. Although the vendors may be pleased with their 2006 revenue, IDC warned they should be worried about slumping demand. The industry stumbled to its tenth consecutive quarter of slowing growth in units shipped, grinding to a halt with no growth in the fourth quarter of 2006. The main culprit is virtualization as corporate IT managers learn to save money by sharing a shrinking pool of hardware resources. That trend has hit the x86 segment the hardest, putting a dent in revenue for chipmakers such as IntelÂ and AMD. Â
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(InfoWorld) - As blue chip companies in developed marketsÂ scramble to outsourceÂ high-cost jobs to low-cost countries, one of the world's biggest technology companies -- IBMÂ -- seems content to keep more than 1,800 highly trained, well-paid IT engineers at its R&D (research and development) lab in BÃ¶blingen, Germany. You wonder why. The German lab, IBM's first in Europe, was launched in 1957 by Thomas Watson, who believed the company had to develop and manufacturer products in markets where it had large customers bases. In recent years, however, IBM has either shut down or sold many of its computer manufacturing operations around the world, Germany notwithstanding. Yet the BÃ¶blingen lab, one of the group's largest, has remained largely intact. This is no small feat given that it's located in a country with high taxes, strict labor laws, and long vacations -- not what you would call useful qualities when competing with markets such as China and India. Despite the growing importance of China and India, where IBM is beefing up its R&D activities, Herbert Kircher, director of development and chairman of IBM Deutschland Entwicklung, sees a continued strong role for his lab and the others in France, Switzerland, and the U.K. as well as those in the U.S. "Yes, an Indian engineer may cost one third of what an engineer costs in Europe or the U.S., and we need to take advantage of this as we are doing," he said. "But we will not exit high-cost regions such as Europe and the U.S. We need the balance." The German lab has strengths of its own, Kircher is quick to point out. "We are able to retain highly skilled, highly motivated engineers," Kircher said. "Unlike IBM engineers in India and China who work for the company for an average two years, our engineers in Germany stay around 10 years, with some as many as 20 years, bringing with them a lot of project and customer experience as well as market know-how." Whereas IBM R&D executives in China or India often assign development projects to engineers with two years' experience or less, Kircher relies on what he calls "the right mix" of engineers. On the one side are engineers and researchers who are fairly new to the company and bring fresh ideas; on the other are staffers with a wealth of experience. "This mix contributes to our success in developing new products," he said. To make sure innovative ideas don't die in committee, the IBM lab in BÃ¶blingen invites engineers and researchers who have been with the company less than five years to participate in an annual, day-long event to present their ideas to senior executives. "This is a great opportunity to discuss and share ideas," Kircher said. In addition, all young researchers are assigned a mentor who can help push through ideas that, for whatever reason, are blocked in their teams. Staff turnover at the German lab is around 1 percent per year. Of these engineers, a number leave Germany -- not IBM -- to work for the company in the U.S., according to Kircher. "Many of our people are approached by competitors who offer more pay and other benefits but they stay because they like their work and their working environment," he said. "We attach great importance to a corporate culture that honors values and high performance." The IBM labs have developed specific competencies over the years. The German lab, for instance, took a lead in engineering the open-source Linux operating system to run on IBM's Z series mainframe computers. The lab also has expertise in workflow software, collaborating closely with German business software vendor SAP AG, which, it so happens, was founded by a group of former German IBM employees. "Some of our people have their own office at SAP's headquarters," Kircher said. "That's how close the cooperation is." In addition to its RFID (radio frequency identification) competency stemming from research conducted more than 15 years ago, the German lab is developing specialized know-how in the area of data analysis. Researchers in BÃ¶blingen are working on an intelligent software system that, for instance, can automatically analyze huge volumes of data collected from millions of video surveillance cameras. "In the future, we could have systems that recognize and interpret a picture, say, of people who enter an airport with luggage," Kircher said. "The system, for instance, could be designed to automatically detect travellers who enter certain areas with bags and leave without them without having people view all this footage." There are plenty more projects underway, according to Kircher, but they must remain confidential for competitive reasons. "We have a very nice, productive working atmosphere in BÃ¶blingen," the head of IBM's German development said. "People like to work here, and we aim to keep it that way."ADVERTISEMENTMAKE SOA REAL WITH IBM WEBSPHERE PODCASTStreamline processes and maximize efficiency within a proven service oriented architecture. Take back control of your business processes with IBM WebSphere.
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Investor's Business Daily - A mix of low-cost labor and high-quality software and services has proved a bonanza for outsourcing firms in India, sending American rivals IBM  , Accenture   and others scrambling to cash in.
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The office furniture maker is producing impressive growth overseas.
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International Business Machines Corp. topped fourth-quarter expectations by a healthy margin, with strong overseas sales and a weak dollar helping to generate a profit of $3.04 billion.
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International Business Machines Corp. reported a small gain in third-quarter profits Monday, as increasing revenues in almost every area of the business, including emerging markets such as Russia and China, helped offset expenses from a pension lawsuit.
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IBM  on Thursday forecast  2008 earnings well ahead of Wall Street expectations as strong  growth abroad made up for weaker results in the United States,  sending its shares up 5 percent.