IBM China consulting unit to add four new offices

IBM expects its China business consulting unit to almost double in size within a year to cater for increasing demands from local firms despite the economic slowdown, a senior executive said. In order to be close to clients the number of offices of the IBM Global Business Services (GBS) unit will grow to 10 from six now within the next 12 months, said Marc Chapman, the general manager of GBS, Greater China Group.
-- Clients to focus on internal adjustment
-- Eyes tapping into infrastructure sector
"We believe its vital to be close to your clients," Chapman told Reuters in an interview. The GBS arm will open the four additional offices having established its Nanjing and Shenzhen branches earlier this year, Chapman said. IBMs business consulting arm now serves more than 100 clients in China, with over half of them Chinese firms, including telecoms equipment maker Huawei and state-owned resource firm China Minmetals Corporation.
Facing a slowdown in the broad economy, some Chinese firms are now refocusing on managing their existing business instead of expanding, aiming to emerge stronger when the market turns.
Chapman said many of GBSs clients are telling him: "Hey, well pause; we wont build so much this year. But well integrate everything we have and get more out of it." In 2008 revenues generated from the GBS segment were $19.6 billion, roughly 19 percent of total revenue of the Armonk, New York-headquartered firm. Chapman did not give a comparable figure for the region he is in charge of.
With governments across the world spending money to stimulate economies more investments will be made in infrastructure and GBS will actively seek opportunities in the sector in China, Chapman said. Beijing unveiled late last year a sweeping 4-trillion yuan stimulus package of spending over the next two years, with a large portion of the funds targeting infrastructure projects such as railways and roads.
"We are very supportive of finding areas where we can really provide support, add value to either the government or companies," Chapman said. He cited its business with Guangzhou Metro as an example. The subway operator has selected IBM to provide a system to manage all of the firms assets with a target of doubling its passenger volume to 4 million per day.