IBM commits more investments in RP

MANILA, Philippines - IBM Corp., a global information technology leader, said it sees enormous growth potential for its business in the Philippines as it commits to continue investing here.

“We want to send a strong signal to the local economy that we have been in this country for 73 years and we are here for another 70 years,” said Jim Corgel, IBM’s general manager for independent software vendors (ISVs) and developer relations.

Corgel is in the country with other international IBM executives to inaugurate today IBM’s Innovation Center at the Ayala Technohub in Quezon City. The third in Southeast Asia after Ho Chi Minh in Vietnam and Kuala Lumpur in Malaysia and the 40th worldwide, the Philippine center aims to help local businesses grow locally and globally. It also offers trainings and one-to-one technical assistance to build and test solutions, links to IBM’s sales support for sales opportunity assistance, and provides collaboration opportunities with IBM, other business partners, IT professionals, and the academe.

Worldwide, IBM has invested about $2.5 billion for the development of these innovation centers. As in other countries, IBM will be working with universities for the Philippine innovation center, which would develop new technologies to support demand of local business, particularly small and medium enterprises.

Corgel, in an interview with the STAR, said with this IBM Innovation Center and new university collaborations, they will be able to make IBM’s technical resources and expertise more accessible to fuel innovation and help local businesses and academics compete on a global scale.

Corgel said the Philippines has enormous growth potentials, which can be seen by the local people’s fearlessness at adopting new technology. “In some cultures, the market dynamics is hard to decipher. But here, there is a lot going on. The sense of confidence, warmth and spirit of the people, the daily routine of dependency on the Internet, the creativity and fearlessness makes the texting capital of the world a good place to invest in. Just look at the numbers on Internet usage. They are growing,” he said.

His group’s investment in the innovation center in Quezon City, he pointed out, is part of IBM’s commitment to have a physical place to learn. While the company has websites or virtual innovation centers which provide easy access to technical development, technical training and sales support from IBM as well as online fora for developers, the physical centers, on the other hand offers a permanent location for new knowledge.

“In putting a brick and mortar physical investment, we are sending a strong signal to the local economy that we are here to stay and that market dynamics in the Philippines are good,” Corgel added.

Corgel also noted that nobody in the Philippines is chasing the cheapest way of doing things, but rather, is looking at the value advantage.

From being largely a hardware company, IBM which is almost 100 years old, has reinvented its business. Now, about 80 percent of its revenues are derived from software and other services (business process outsourcing, customer relations management) while only 20 percent is from hardware. IBM has divested businesses like personal computers (sold to Lenovo) and hard disk drives and invested instead in higher-value segments like business intelligence and analytics, virtualization and green solutions. Majority of the company’s sales and distribution are now done through business partners.

IBM has been rebalancing its spending to areas of greatest opportunity. As it continues to drive significant productivity in major markets, the company said it is increasing investment in growth markets which includes ASEAN.

Corgel is responsible for IBM’s worldwide relationship with ISVs, which contribute to one third of IBM’s revenues from its software business. He also manages the key partnerships with the development, academic, and venture capital communities which comprise IBM’s industry-leading ecosystem of influencers.

One of the reasons for IBM’s continued success, he pointed out, is the fact that the company has never reduced its investment in science. “In fact, in the IT community, we are known for our scientists and salespeople,” he said. About $7 billion is being spent annually for science-related research.