New York, Dec 05: International Business Machines Corp. will continue to build its services business abroad, an official said on Thursday, saying it makes IBM more competitive, saves its customers money and frees up funds for other purposes. "You can expect continued growth in this marketplace," Doug Elix, the head of IBM's services division, told analysts.
Companies are going to continue outsourcing, or handing their non-core business activities to other companies such as IBM to manage, he said.
IBM, based in Armonk, New York, has been among companies that have moved traditionally higher paid services jobs to low cost centers such as India in recent years.
"I do believe this is one of the more misunderstand elements of what's going on in our industry," Elix said. "We have been leveraging skills globally for as long as we've been in business." Elix was speaking at IBM's twice-annual meeting with analysts.
Bureau Report