Massive investment in India by IBM

**Xenophon** · 6 June 2006, 08:19

Doomed etc...

**benn0** · 6 June 2006, 08:48

Originally posted by DimPrawn

http://news.bbc.co.uk/1/hi/world/south_asia/5050884.stm

Computer giant IBM has announced plans to invest nearly $6bn (£3.2bn) in India over three years on the back of strong growth in business outsourcing.
The deal, which is triple the $2bn that IBM has already invested in India, is the biggest by a multinational corporation in the country recently.

The company has extensive operations in India, most of which are also running business services such as call centres.

IBM's workforce in India is the firm's largest outside the US.

The company has about 43,000 employees in 14 cities in India.

India's software services sector is likely to grow by more than 25% this financial year on the back of rising demand for outsourcing, India's National Association of Software and Service Companies (Nasscom) he said.

IBM chairman and chief executive Sam Palmisano said the investment will be used to build service delivery centres in Bangalore, India's technology hub, and create a telecommunications research and innovation centre for clients around the world.

This is great news as we have been consistently told by New Labour that globalisation is good for everybody. Think of all these massive savings passed onto us the consumer. We'll all reap these great benefits. Thank you IBM.

If IBM see business opportunities in India, why should they ignore them just to suit you?

**DodgyAgent** · 6 June 2006, 09:15

Originally posted by benn0

If IBM see business opportunities in India, why should they ignore them just to suit you?

The irony benn0 is that you are right. Thanks to your lefty friends making Western Europe uncompetitive.

**benn0** · 6 June 2006, 09:29

Originally posted by DodgyAgent

The irony benn0 is that you are right. Thanks to your lefty friends making Western Europe uncompetitive.

It wouldn't have been any different under a right wing government - Unless of course everyone is prepared to work for less?

**DimPrawn** · 6 June 2006, 09:39

We could all work for less IF we didn't have the highest total tax burden in the world. Then we would see more investment IBM style, more research, more jobs, more opportunities and ultimately a better std of living.

As dodgy says, the irony is the leftie policies of tax, spend and regulate mean IBM are right to choose India for the future. In the 80's, large american mega corps were setting up in places like the UK and Ireland for the same reasons they choose India now.

But the socialist mentality benn0 cannot grasp the long term good of low taxes and foreign investment that Thatcher sought can it?

**The Lone Gunman** · 6 June 2006, 09:48

The problem Benny boy is the doom scenario.
All jobs go to outsource countries.
No high earners in the UK.
UK becomes tourist economy.

Up shot is nobody can afford high end goods, not even washing machines.
Nobody can service their mortgages.
Millions of bankrupcies.
Massive deflation and economic depression.

The offshore companies collapse as nobody can afford their products.
The offshore economies collapse too.

The above is a precis, but I am sure you lot can see the route to this.

We are going to struggle to avoid this scenario.

**benn0** · 6 June 2006, 09:50

Originally posted by DimPrawn

We could all work for less IF we didn't have the highest total tax burden in the world. Then we would see more investment IBM style, more research, more jobs, more opportunities and ultimately a better std of living.

As dodgy says, the irony is the leftie policies of tax, spend and regulate mean IBM are right to choose India for the future. In the 80's, large american mega corps were setting up in places like the UK and Ireland for the same reasons they choose India now.

But the socialist mentality benn0 cannot grasp the long term good of low taxes and foreign investment that Thatcher sought can it?

Bollox and you know it. IBMs decision to go to India is purely a financial one. It has nothing to do with the taxation regime in place in Britain. They would have done the same no matter what government is in place because the fact remains that labour costs are cheaper in India. It's the free market at work and you are supposedly an exponent of that. Unless of course it doesn't suit you.

Would you be willing to work for less if your income tax rate was reduced? No you wouldn't because you seek to maximise your income. I have no problem with that, but don't start crying on here because India is able to undercut you. We live in a global economy now whether you like it or not.

You started this thread because you weren't happy with IBM investing in India. Because it might affect YOU. What better way to highlight the 'me me me' mentality of the typical conservative voter?

**Mailman** · 6 June 2006, 09:53

Originally posted by benn0

Bollox and you know it. IBMs decision to go to India is purely a financial one. It has nothing to do with the taxation regime in place in Britain.

Actually the two are interlinked. High company taxes vs move to india and get taxed feck all = invest more in the cheaper market.

Unfortunately for this country the government is thinking just like you and cannot see the link between high taxes and the lack of incentives for companies to invest in this country.

Mailman

**benn0** · 6 June 2006, 09:55

Originally posted by Mailman

Actually the two are interlinked. High company taxes vs move to india and get taxed feck all = invest more in the cheaper market.

Unfortunately for this country the government is thinking just like you and cannot see the link between high taxes and the lack of incentives for companies to invest in this country.

Mailman

Labour costs are the biggest factor.

Massive investment in India by IBM