IBM 2001 Annual Report Download - page 27

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no. 8
We put down roots in Asia
CAPTURING NEW MARKETS
For IBM, Asia isn’t an “emerging market.” We started our
first operations there in 1925, and have built a $17 billion
franchise
—
which alone would make our Asian operations one
of the largest information technology companies in the world.
Identifying the world’s emerging growth markets isn’t that
hard. The trick is operating inside those markets as a local
enterprise, one that understands business practices and
cultural traditions that can form barriers-to-entry more
formidable than tariffs or entrenched competitors.
Until the mid-’90s for example, Asian companies staunchly
resisted strategic outsourcing, long after other parts of the world
had embraced it. When we signed our first outsourcing con-
tracts in Japan, it was because our customers understood that
their employees were not moving to a foreign company with
a local presence, but to a Japanese company with very familiar
values and principles.
strategic outsourcing revenue in asia went from
nothing in 1995 to $2.6 billion in 2001,
with 47 percent growth at constant currency last year
in japan,services revenue in 2001
increased 25 percent in a very difficult economy
our staff in the people’s republic of china stood at 120 in 1991.
that’s grown to a workforce of more than 11,000 today, including
wholly owned subsidiaries and joint ventures.
revenue increased 30 percent to $1.5 billion in 2001