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IBM Flourishes in India - Assignment Example

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India is a democratic country with lot of political parties and ideologies. The one party rule of either the Indian National Congress or the Bharatiya…
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IBM Flourishes in India
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Download file to see previous pages 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). This paper briefly analyses the IBM performances in Indian market currently.
IBM Global Services works on outsourcing IT services in India on behalf of the many multinationals interested to 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 everyday 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 like 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.
IBM recorded total revenue of US$ 606 million ...Download file to see next pagesRead More
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