IBM (International Business Machines Corporation)
Is currently in the top 10 trusted brands in the world. The experts when it comes to providing technical based solutions. It has expanded its base in India long back. Currently IBM’s Indian division has employed around 1,30,000 workforce. Which is more than any other division of IBM in the world. This is approximately 35% of their total workforce around the globe. Despite endless pressure from USA administration, it chooses to expand its base in India. Reason being the low costs and easy availability of the skill sets.
“IBM India, in the truest sense, is a microcosm of the IBM company,” Vanitha Narayanan, chairman of the company’s Indian operations said in an interview with
IBM India
The work in the India offices comprises of managing the computing needs of telecommunications conglomerate. (like AT&T and energy, petrochemical group Shell). IBM India also indulges in research activities in fields like visual search, artificial intelligence and computer vision. Which is for self-driving cars. New York Times reports that IBM India’s team is also working with the producers of Sesame Street to teach vocabulary to kindergarten students in Atlanta.
After reporting a continuous decline of its revenue in 21 consecutive quarters, outsourcing is a good way for IBM to lower their costs.
Despite outsourcing being way old strategy, this Americas tech giant’s case is quite unusual, as it employs huge workforces in a single foreign country, as compared to its origin country.
NYT also mentions that research firm Glassdoor says that the salaries paid to an Indian worker is almost one-half to one-fifth of his American counterpart.
This has caught attention in everybody’s eyes. Especially after the victory of Donald Trump, whose prime agenda during his election campaign was to “keep jobs in America”.
This puts IBM in a pressure to create more jobs in US other than only spread its base across India.
