IT giant IBM plans to open more solution centers and increase
its headcount on the mainland in the coming years as part of its
global transition from hardware manufacturer to information
technology service provider.
"We will continue to scale up the number and size of solution
centers on the mainland," said Dominic Tong, general manager of
IBM's China business.
At present, IBM has five centers and 3,000 staff on the
mainland.
The centers are significant because they provide a platform to
cultivate mainland IT talents, Tong said. But he refused to
disclose how many centers the firm plans to add.
Tong said IBM wants to organize more tours for Hong Kong and
mainland IT companies this year, to facilitate investment in each
other's markets.
"We regularly organize the so-called China Innovation Tour for
companies to visit our research and solution centers on the
mainland, which could gear them up to ride on the mainland economic
boom."
IBM said it is also helping its mainland partners to go
global.
"Many mainland enterprises plan to extend their businesses
overseas, and we can use our networks to assist them in setting up
branches in overseas markets such as Hong Kong," said Tong.
The move is believed to be part of IBM's efforts to shift from
being a manufacturer to a service provider, analysts said.
IBM has sold out or spun off most of its low-end manufacturing
units in recent years, and is now focusing on providing IT solution
services to clients.
On its cooperation with China's largest computer maker Lenovo,
Victor Fung, the company's global technology services executive,
said: "IBM has gradually handed over our personal computer and
low-end technology businesses to Lenovo in recent years."
"In the future, we will mainly concentrate on technical support
and consultancy services, but IBM still relies heavily on Lenovo's
network to expand its turf in the market," Fung added.
Lenovo purchased IBM's loss-making personal computer assets for
US$1.25 billion in 2004.
IBM got a stake of nearly 19 percent in Lenovo as part of the
deal. The company is selling 3.5 percent of its Lenovo shares for
HK$3.2 to HK$3.3 per share for HK$990 million.
Analysts said the move had come at the right time, as Lenovo's
Hong Kong-traded shares soared last week after it announced its
best quarterly results since the IBM deal.
(China Daily February 8, 2007)