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Tuesday, October 31, 2006

IBM Leaves The US, Gingerly

IBM is setting up development centers in India and China. Its global procurement center has already be relocated to China.

The two new centers will help IBM build its service-oriented architecture business "which makes it easier for businesses to quickly find information stored in different formats."

The India facility will focus on solutions for healthcare. The China-based operation will work on government and bank solutions.

What happened to locating these jobs in the US? IBM now has 43,000 employees in India. That number is likely to grow. And, while IBM keeps it headquarters in the US, there seems to be a dearth of announcements about adding facilities here.

IBM has benefited from its new service-oriented strategy. On the basis of a strong financial performance in Q3, the companies stock has gone from $74 in July to the current $92, right at its 52-week high.

Let's hope that IBM's US-based employees made a lot of money on their stock options. They may need it for early retirement.

Douglas A. McIntyre can be reached at He does not own securities in companies that he writes about.

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