IBM Opens 50th Branch Office in China

SHANGHAI, China, June 27, 2012 /PRNewswire/ -- IBM (NYSE: IBM) today announced the opening of two new branch offices in the Chinese cities of Yantai and Yinchuan, bringing its total number of locations in the country to 50.

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The new branches cement IBM's growing footprint across China – the world's second largest economy. IBM has an established geo expansion program in China in place to expand its operations to emerging high growth regions. The company is currently identifying new untapped markets in second and third tier cities in the country, distinguishing itself as a first-mover and securing competitive advantage over other international players.

The new locations form part of IBM's ongoing investment in China, covering the creation of new facilities, offices, training and recruitment, sales and marketing and corporate citizenship.

"China is a key market for IBM and we have a major program of geographic expansion in place to ensure that we tap into the country's best growth opportunities – wherever they are," said Qian Daqun, Chairman and CEO of IBM Greater China Group. "As the IT market in China's regional cities matures, we are experiencing greater demand for advanced solutions and services meaning that a local physical presence is essential for our business."

According to research firm IDC, the IT services market in China is expected to almost double over the next five years - from US$12.2 billion in 2010 to US$23.7 billion in 2015.  IDC's China Services Market report says the growth will continue to be led by the adoption of next-generation IT systems as well as IT services spend due to the implementation of China's 12th Five-Year Plan.

Located in the north and west of China, Yantai and Yinchuan's economies have traditionally been dominated by agriculture, but the emerging services and manufacturing sectors are driving new IT sector growth as businesses turn to technology to enhance operations and gain competitive advantage.

"Technology is increasingly important in cities like Yinchuan acting as a key enabler of economic growth and helping to transform city systems. We welcome industry leaders such as IBM who not only bring cutting edge technologies but also know-how and expertise that are essential for the city's development," said Wei Kaixiang, Deputy Secretary of the People's Government of Yinchuan Municipality.

IBM is engaged with a number of clients and partners across multiple industries in the regions such as telecommunications, financial services, food production, software development, retail, textile and public sector.

For instance, IBM implemented a new IT system for Yantai Wanhua Polyurethanes Company to help manage the company's supply chain, human resources and customer relationship processes.  The new system has helped the leading manufacturer to increase operational efficiencies by 77 percent over the last four years. In another project, IBM is helping Yantai Wanhua Polyurethanes to develop an outsourcing strategy to enable future growth. 

"As a regional company playing on the global stage, technology helps us to increase our competitiveness by decreasing costs and increasing the quality of service for our customers," said Kou Guangwu, Director of the Board, Executive Vice President and CIO of Yantai Wanhua Polyurethanes Company. "IBM is a powerful partner for us providing access to the latest technologies and business expertise."

Over the last year, IBM has opened offices in the cities of Dalian, Dongguan, Foshan, Guiyang, Haikou, Hu Zhou, Jia Xing, Jiao Zuo, Lan Zhou, Li Shui, LiuZhou, Luoyang, Mian Yang, Ping Ding Shan, Tai Zhou, Tangshan, Wenzhou, Wuxi, Xuzhou, as well as Yantai and Yinchuan.

IBM first stared operations in China in 1979 when it shipped an IBM 370/138 mainframe to Shenyang Air Blower Factory. It has since gone on to partner with thousands of clients across the country in the financial, telecommunication, oil and gas as well as government sectors.

In the 1990s IBM was the first multinational company to establish joint venture plants in China and set up R&D operations with the IBM China Research Laboratory (CRL) in north-west Beijing. More recently, IBM opened a Global Rail Innovation Center, an IBM Analytics Solution Center, the IBM China Institute of e-government and the IBM Energy & Utilities Solutions Lab. Shanghai is also the headquarters of IBM's Growth Markets Unit.

In addition to its extensive commercial outreach, IBM has a number of initiatives in place to support the development of local skills. This includes community outreach through its Corporate Services Corps program, through which IBM has recently deployed 17 teams of IBM professionals to China to work on community-driven economic development projects.

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Contacts:
Guang Hua Ma
IBM China
+861063618113
magh@cn.ibm.com

Kui Kinyanjui
IBM Growth Markets
+254 20 2834315
MARIEKIN@ke.ibm.com

Jonathan Batty
IBM Growth Markets
+ 48-693-93-5403
Jonathan.Batty@pl.ibm.com

SOURCE IBM