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IBM promises $6bn for India

Big Blue promises big spending

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IBM is spending $6bn in the next three years to extend and improve its operations in India.

This is triple the $2bn IBM has spent in India over the last three years.

IBM chief executive and chairman Sam Palmisano, speaking in Bangalore, said: "India and other emerging economies are increasingly (becoming) important part of IBM's global success. IBM is not going to miss that opportunity." More from the Beeb here.

Big Blue will use the money to develop a telecoms research centre in Delhi. The idea is that IBM will be able to offer businesses "one-stop-shopping" for software, services and hardware

Two years ago IBM bought Indian outsourcing firm Daksh, since then it has grown to 20,000 employees. IBM Indian claims to be the largest multinational company operating in India and employs 43,000 staff - up from just 9,000 in 2004.

Indian software exports are expected to hit $60bn by 2010, according to industry association NASSCOM.

What is not clear from the announcement is whether jobs will be lost elsewhere in IBM's world. Last year the firm cut 13,000 jobs - mostly in Europe, in order to cut costs.

In other news Apple has decided to pull the plug on a planned call centre in Bangalore. Apple had hired about 30 people for the new centre but is now binning the idea. More from CNet here.

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