Thursday, November 03, 2005

IBM to expand in India

Indian newspapers are reporting that IBM has purchased land in Bangalore. IBM CEO Sam Palmisano was recently in India on a not-so-well-publicized visit. Unlike CSCO recent announcement of spending $800M in India, IBM likes to keep things quiet for now. As IBM has been on the firing binge in Europe and America, the expansion in India would not sit well with some. Given that IBM services bookings was lighter than most expectations, I do not think there were any doubts that IBM will expand in India to get the growth rate of its services business higher and make that business more profitable at the same time. I would not be surprised if IBM acquired some of the Indian players in the field also.


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