IBM Staffs Up in Low-Cost Countries

PanAsianBiz ^ | June 6, 2006 | Dr. Bill Belew

[G. Stolyarov II]

IBM is staffing up in low-cost countries. To know one's surprise two of those countries are India and China. One more country is Brazil and IBM is also taking aim at Eastern Europe.

But just how much is IBM depending on these countries and for what?

Eastern Europe - IBM has grown from 2,900 workers to 5,125 workers since 2003.

Eastern Europe provides data centers, service skills centers and Linux development labs.

The work force in Brazil has doubled since 2003 - 4,500 to 9,000 and they are providing data centers, call centers and Linux development.

The Chinese work force has grown nearly 75% from 4,200 to 7,200 and IBM depends on them for software development, data centers, demonstration research and other research.

The big winner however is India. IBM's work force has grown by almost 500% from 9,000 workers to 43,000 workers who are operating data centers, call centers, and are doing software development and research.

[G. Stolyarov II]

It is good to see the growing global economy at work; IBM is harnessing the skills of foreign workers from many different countries to benefit consumers in the United States and elsewhere. IBM is also giving many talented foreign programmers a chance to rise economically via their own talents and hard work. See Dr. Belew's blog at PanAsianBiz

[NinoFan]

I don't mind mind foreign engineers, but those call centers can be a real pain in the rear when you try to call for support or help.

[Hodar]

To know one's surprise ....

Must be a public school graduate.

[SamAdams76]

It's a shame they can't move every single job there is overseas. Unfortunately, we are going to still people to work in fast-food restaurants. But wait, can't we operate the drive-throughs from Thailand? For example, when you pull up to a Burger King in Joplin, Missouri, your order can be taken by some 14-year-old girl in Bangkok being paid 14 cents an hour. Why not? All you have to do is feed the audio overseas using a Skype connection. Of course, we will need somebody to flip the burger and toss the frozen fries into that grease vat. But wait, can't we invent some kind of machine that can withdraw a frozen patty from the deep-freezer, toss it onto a hot griddle and flip it over after a pre-determined amount of time? Then wrap it and slide it down a conveyor belt to the waiting customer?

I am hopeful that something can be invented soon that can do this.

[jjw]

And don't forget, we can also get temporary guest workers to build the Burger King or whatever in the first place.

[mysterio]

Boy, isn't it awesome when our corporations move all the jobs overseas? If we could move every job overseas, we'd have super cheap products to buy with our unemployment and government checks! And a whole lot more time off! Globalization, thy name is vacation!

[The Red Zone]

Why not a robo-order taker. The result being that a McDonalds becomes, in essence, a big vending machine.

[Brilliant]

It's good business.

[soccer_maniac]

I in IBM stands for International after all :)

[technochick99]

They've already discussed doing something similar - having foreign workers handle drive-throughs. No joke... Obviously, it would just be the same stellar communication we've come to expect from overseas call centers. The grunt work would be done here.

[SamAdams76]

Actually that might do a disservice to vending machines. Vending machine food is so much better than what you get at McDonalds.

[warchild9]

All the IBM jobs here in the Triangle have been converted into either temp jobs or positions held open for H1-b's. The Yankee colonists/economic refugees pouring into my state learn this right quick. (Those I've known--and the Mrs. is an ex-IBM'er--have moved on, once they discovered they can't maintain a household on $25,000 a year. Lost a lot of friends this way over the past few years.)

[lasereye]

Boy, isn't it awesome when our corporations move all the jobs overseas?

Nothing in the article says that these are jobs which were previously in the U.S. The fact is there is a lot of tech talent overseas. Why shouldn't they seek to hire them?

[Borax Queen]

Ping to post 12.

[mysterio]

The fact is there is a lot of tech talent overseas. Why shouldn't they seek to hire them?

Of course we should. The more professional jobs we send overseas, the better. They work cheap, and if we export all labor, we won't have to work. We can all live off of the government and buy super cheap stuff! And have really cool vacations. Work is hard. IBM is great for making sure Americans don't have to do all of that evil, fun-killing work.

[servantboy777]

There are some on FR that flame the crap outta ya if you stand for the American worker over outsourcing of good paying manufacturing jobs.

Your right on the money. Good paying jobs are being replaced by lower paying service sectors positions. Now Congress and the president is about to ram rod an immigration bill through that will bring in millions of unskilled workers into our economy.

I for one would be willing to pay a little more to protect America.

[Cobra64]

Eye new yew wood kach that righters misteak.

[BeHoldAPaleHorse]

I for one would be willing to pay a little more to protect America.

The problem is that you wouldn't pay a little more. You'd pay a lot more, and you'll get less.

[RJL]

The big winner however is India. IBM's work force has grown by almost 500% from 9,000 workers to 43,000 workers who are operating data centers, call centers, and are doing software development and research.

I'll bet IBM can get corporate executives very cheaply in India as well. Funny that I don't see that occupation listed here.

[BikerJoe]

Aw, what the heck...

I asked this question on another similar thread a while ago, and I may just start asking it everytime the offshoring proponents are around...I'm still waiting for good answer...

What capabilities and infrastructure (technological and industrial) do you think it's in our NATIONAL INTEREST to retain?