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Performance of IBM in Indian Subcontinent - Term Paper Example

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This paper analyses the IBM performances in the Indian market. IBM is engaged in the making software and hardware which doubles their social commitments. Diversification, total quality management, and operations management are the business strategies adopted by IBM for Indian conditions.   …
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Performance of IBM in Indian Subcontinent
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Download file to see previous pages Each party has its own ideologies and policies about the foreign policies and how much the Indian market can be opened up for foreign investments. These ideological differences once drove many foreign multinational companies including IBM out of the country. But at present because of globalization, India has realized the importance of foreign investments for their economic growth and welcoming as much as Foreign Direct Investments (FDI) possible. Moreover, India is led by the renowned economist Dr. Man Mohan Singh who knows the importance of IBM like companies in India. “Growing modestly until the turn of the millennium, IBM India has been growing by leaps and bounds since then. Its workforce now totals 38,000, up from 23,000 two years ago and second only in number to IBMs U.S. workforce among countries in which IBM operates” (Gibson, 2006). 
IBM Global Services works on outsourcing IT services in India on behalf of the many multinationals interested in accessing the local Indian engineering talent and the competitive labor costs available there. “Outsourcing refers to a company that contracts with another company to provide services that might otherwise be performed by in-house employees” (Thompson, 2009). Labor cost is increasing every day and moreover, shortage of skilled and experienced professionals forced multinational companies like IBM to look beyond their boundaries in America to explore the cheap labor markets of other countries like India which is blessed with immense manpower especially IT professionals. In India, like countries, IT professionals are searching for better placements whereas IBM likes American companies searching for IT professionals. Globalization has opened up the Indian market and the present Indian government led by the Congress party has escaped from the controls of the left parties which actually strongly opposed the entry of foreign companies in India. Thus the setting is well and good for IBM like IT companies to explore the Indian markets.      ...Download file to see next pagesRead More
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