IBM Flourishes in India Assignment Example | Topics and Well Written Essays - 2500 words

IBM Flourishes in India - Assignment ExampleThese ideological differences once drove many foreign multinational companies including IBM out of the country. exactly at demonstrate because of globalization, India has realized the greatness of foreign investments for their economic growth and welcoming as a good deal as Foreign Direct Investments (FDI) possible. Moreover India is led by the re at one timened 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 function in India on behalf of the many multinationals interested to accessing the local Indian engine ering talent and the competitive dig out 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 go through professionals forced multinational companies like IBM to look beyond their boundaries in America to seek the cheap ram markets of other countries like India which is blessed with immense manpower especially IT professionals. In India like countries IT professionals are inquisitory 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 potently 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