Published On: Thu, Sep 28th, 2017

IBM’s major transform in its Employees to India instead of USA

IBM has shifted its center of gravity halfway around the
world to India, making it a high-tech example of the
globalization trends that the Trump administration has railed against.

india24x7news.com

BANGALORE, India — IBM dominated the early decades of computing with inventions like the mainframe and the floppy disk. Its offices and factories, stretching from upstate New York to Silicon Valley, were hubs of American innovation long before Microsoft or Google came along.

But over the last decade, IBM has shifted its center of gravity halfway around the world to India, making it a high-tech example of the globalization trends that the Trump administration has railed against.

Today, the company employs 130,000 people in India — about one-third of its total work force, and more than in any other country. Their work spans the entire gamut of IBM’s businesses, from managing the computing needs of global giants like AT&T and Shell to performing cutting-edge research in fields like visual search, artificial intelligence and computer vision for self-driving cars. One team is even working with the producers of Sesame Street to teach vocabulary to kindergartners in Atlanta.

“IBM India, in the truest sense, is a microcosm of the IBM company,” Vanitha Narayanan, chairman of the company’s Indian operations, said in an interview at IBM’s main campus in Bangalore, where the office towers are named after American golf courses like Peachtree and Pebble Beach.

The work in India has been vital to keeping down costs at IBM, which has posted 21 consecutive quarters of revenue declines as it has struggled to refashion its main business of supplying tech services to corporations and governments.

The tech industry has been shifting jobs overseas for decades, and other big American companies like Oracle and Dell also employ a majority of their workers outside the United States.

But IBM is unusual because it employs more people in a single foreign country than it does at home. The company’s employment in India has nearly doubled since 2007, even as its work force in the United States has shrunk through waves of layoffs and buyouts. Although IBM refuses to disclose exact numbers, outsiders estimate that it employs well under 100,000 people at its American offices now, down from 130,000 in 2007. Depending on the job, the salaries paid to Indian workers are one-half to one-fifth those paid to Americans, according to data posted by the research firm Glassdoor.

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