IBM's New Poland Center - Analyst Blog

International Business Machines Corp. (IBM) announced that it has opened a new technology service delivery center in Wroclaw, Poland. This center aims at capitalizing on the opportunities in the services, business process outsourcing capabilities and optimization business. The cost details were not given out.
 
IBM has built global delivery service centers in more than 20 countries worldwide. Through these centers, IBM provides IT and BPO services as well as automation and support to its strategic outsourcing clients.
The new service delivery center will draw upon the knowledge and expertise from IBM's research wing. The center will be staffed with technology and engineering graduates as well as skilled IT professionals. These recruits will run the critical servers and storage systems, thus ensuring optimal IT infrastructure facility for IBM's clients.
The new service delivery center will offer a diverse array of services such as server systems operations, security services and end-user services, including maintenance and monitoring of computer hardware and software systems to mitigate defects.
IBM is coming up with new cost efficient data centers and is focusing on the development of new solutions. IBM's initiative to build service centers will reduce costs, facilitate clients in improving the speed and quality of their business decisions and drive efficiency.
 
The company's data center solution and Cloud computing initiatives are also generating growth. With an investment of over $6.0 billion in R&D, IBM has built an Analytics Solution center, Business Resilience service delivery centers and Cloud computing centers. We expect these centers to help increase revenues, going forward.
 
IBM anticipates strong revenue growth from the emerging markets such as China, India and Brazil and frontier markets in Africa, the Middle East and Asian countries. IBM looks forward to invest $1 billion for building and expanding its data centers in emerging markets.
 
IBM has announced a series of investments in Egypt, Argentina and China. The growth and emerging markets will contribute 25.0% to total revenues by 2015.
 
IBM's strong growth will be further driven by the company's leadership position and its strategy of expanding in more than 20 emerging geographical areas (BRIC, Australia, Vietnam, Philippines and Mexico).
 
Expanding its global network of centers through internal investments, IBM is addressing the increasing demand for high value information technology services and advanced analytics capabilities, which will help clients to build smarter business systems and facilitate improved decision-making.
 
We believe IBM has been successfully executing its strategic initiatives such as Smarter Planet, Business Analytics and Optimization and Cloud Computing that will help drive the next cycle of growth and productivity for its clients. IBM's growth initiatives have resulted in significant development opportunities and generated high profit margins for the company.
 
We maintain our Neutral rating on IBM in the long term. IBM currently has a Zacks Rank of #3, a short-term Hold rating (1 to 3 months).

 
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