by CIO Staff

IBM Builds Software Delivery Center in India

Sep 21, 20062 mins
IT Leadership

IBM has set up a new application services facility in India’s north-eastern state of West Bengal, in a city that has emerged as one of the country’s key software and services hubs.

The new facility is in Kolkata, the capital of West Bengal, and is equipped to have about 3,000 staff, a spokeswoman for IBM India said. She could not give a timeframe for the expansion.

Kolkata has emerged as a center for IT services because of the surprisingly business-friendly policies of West Bengal’s communist government. A number of multinational companies and Indian outsourcers, with bases in Bangalore, Mumbai or Delhi, have expanded to Kolkata in a bid to tap new pools of talent.

IBM already has three other delivery centers in the city, and it’s home to IBM’s second-largest pool of employees in India after Bangalore.

The Armonk, New York, company announced in June that it is investing US$6 billion in India over the next three years. It’s part of IBM’s strategy to grow its presence in emerging markets such as China and Brazil, because they offer vast pools of staff and also because they are attractive markets themselves.

IBM had about 43,000 staff in India as of June. It has hired more staff since then for its software and business process outsourcing (BPO) operations in India, according to industry sources.

-John Ribeiro, IDG News Service (Bangalore Bureau)

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