IBM expects double-digit growth in China
Updated: 2012-02-17 17:21
By Gao Yuan (China Daily)
Robert LeBlanc, senior vice-president of Middleware Software at IBM Software Group
BEIJING - IBM Corp, one of the world's largest computer-services providers, is expected to see double-digit growth in profits in China in the next three years, led by increasing revenues from its software sector, according to a top executive.
"Software continues to be a very important part of IBM, and helped the development of the company," said Robert LeBlanc, senior vice-president of Middleware Software at IBM Software Group, told China Daily on Thursday.
IBM has set aside more than $20 billion to do acquisitions, most of which will help IBM beef up its software development over the next four years, LeBlanc added.
"Chinese customers are very interested in building their infrastructure to be able to take their businesses to the next level," said LeBlanc, adding that IBM's job was to help these companies with solutions.
The Armonk, New York-based IT giant has established six research centers since 1999 across China in a bid for more Chinese clients,
However, IBM's China business faces increasingly fierce competition from its global rivals such as Microsoft Corp, Oracle Corp and SAP AG.
Last November, SAP announced an investment of at least $2 billion in China by 2015 as an effort to grab a larger market share and to fund innovation.
But LeBlanc believes IBM is in a comfortable position and can maintain its edge in the next few years because it offers a suite of integrated services to Chinese clients.
"IBM's future in emerging markets lies in finding ways to integrate people, data and the business processes," he said.
"There is no single competitor who can provide end-to-end solutions to clients like IBM," he added.
IBM's software business now represents 44 percent of its total profits, and has helped generate $24.9 billion in revenues in 2011. The company estimated that its global earnings could increase to at least $14.85 a share in this year, Bloomberg News reported.
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