IBM Moves Solutions Division to India


I've linked to a lot of stuff about outsourcing over the years, and the recent trend seems to be away from outsourcing for some things because of quality concerns. It seems that workers in India or China just don't always do things the way Americans do. Thus I am suprised to see that IBM is moving almost the entire solutions division to India.

In a stunning example of how India has progressed from a country to which businesses farmed out routine programming and back-office work into a center for leading-edge innovation, IBM disclosed Wednesday that it is moving all of the design and development of its vaunted business consulting offerings to the fast-growing country.

"Until this, we depended on any number of solution development centers across the globe. We're moving all of that development to India," says Jeby Cherian, head of IBM's new Global Solutions Delivery Center in Bangalore. IBM says it will spend $200 million this year to launch the center. The center will handle the bulk of solutions development work for IBM worldwide, with two existing development centers in India playing a supporting role.

The quality of work there can't be all that bad now, can it? After all, IBM is putting $200 million into the project. With all these new jobs and the corresponding new wealthy, India just may be the entrepreneurial hotbed of the future.

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Hat tip to Bman at Jotzel.