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Why China Attracts Tech Major IBM

With the opening of new offices regularly, IBM is trying to occupy every corner of the planet.

Close on the heels of opening 10 new branch offices across Russia and the Commonwealth of Independent States (CIS), the company today, June 27, announced the opening of two new branch offices in the Chinese cities of Yantai and Yinchuan, bringing its total number of locations in the country to 50.

The new branches cement IBM’s growing footprint across China – stated to be the world’s second largest economy. IBM has an established geo expansion program in China in place to expand its operations to emerging high growth regions, it said.

[ Also Read: Why is IBM Angry with Yuan Yipeng of China? ]

The company is currently identifying new untapped markets in second and third tier cities in the country, distinguishing itself as a first-mover and securing competitive advantage.

Working on this strategy, it opened a new branch office in Ludhiana, Punjab as part of its continued geographic expansion across India.

The Ludhiana branch is IBM’s seventh new office to be opened in India in the past 12 months after those in Coimbatore, Indore, Guwahati, Dehradun, Raipur and Visakhapatnam. (Read: IBM Expands in India with Office in Ludhiana, Punjab)

Similarly, the company announced the expansion of its branch office in Port Louis on the island of Mauritius in the Indian Ocean off the South East coast of Africa. (Read: IBM Expands in Africa with Office in Mauritius)

With the aim to strengthen its position in China, IBM also opened its server remanufacturing center in China. The new center, located in Shenzhen, will help reduce the impact of e-waste on the environment by extending the life of older IT equipment that otherwise would go into landfills. (Read: IBM to Remake Old Computers in China)

Then Poland. IBM announced the opening of two new offices in the Polish cities of Katowice and Wroclaw. The new offices are in Poland’s Upper and Lower Silesia regions which have seen some of the country’s strongest economic growth in recent years. (Read: Small is the New Beautiful for IBM; Now in Poland)

[ Also Read: IBM Steps Up Middle East Activity with Qatar Office ]

According to the company, nearly 100 new IBM branch offices have opened in growth markets since the beginning of 2011.

China has been a major attraction for IBM. The new locations form part of IBM’s ongoing investment in China, covering the creation of new facilities, offices, training and recruitment, sales and marketing and corporate citizenship.

[ Also Read: IBM Advised to Treat its People with Humanism in China ]

“China is a key market for IBM and we have a major program of geographic expansion in place to ensure that we tap into the country’s best growth opportunities – wherever they are,” said Qian Daqun, chairman and CEO of IBM Greater China Group.

“As the IT market in China’s regional cities matures, we are experiencing greater demand for advanced solutions and services meaning that a local physical presence is essential for our business.”

[ Also Read: China: New Battleground for PepsiCo and Coca-Cola ]

Over the last year, IBM has opened offices in the cities of Dalian, Dongguan, Foshan, Guiyang, Haikou, Hu Zhou, Jia Xing, Jiao Zuo, Lan Zhou, Li Shui, LiuZhou, Luoyang, Mian Yang, Ping Ding Shan, Tai Zhou, Tangshan, Wenzhou, Wuxi, Xuzhou, as well as Yantai and Yinchuan.

IBM first stared operations in China in 1979 when it shipped an IBM 370/138 mainframe to Shenyang Air Blower Factory. It has since gone on to partner with many clients across the country in the financial, telecommunication, oil and gas as well as government sectors, according to the company.

Photo courtesy: IBM


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