IBM Relocates R&D to India After Shutting Down China Operations

Recently, IBM has made significant changes to its research and development (R&D) operations. The company is closing its R&D team in China, which will impact less than 1,000 employees. The affected team, which focuses on server and storage technology, will see its job functions transferred to other countries, notably India.

Specifically, Bengaluru in India will be a primary destination for this shift. This move comes amid escalating geopolitical tensions between the US and China, and it reflects a broader trend of companies reassessing their presence in the region.

IBM's strategy adjustment aligns with the diminishing importance of the region for US tech firms, as local clients increasingly opt for home-grown providers.

With a 19.6% drop in revenue last year, IBM has struggled to maintain its foothold in the Chinese market once seen as a key growth area.

The sensitivity of hardware in the context of US-China technological competition is heightened, given both nations' pursuit of dominance in sectors like semiconductors and artificial intelligence.

With IBM’s increased presence in India, there will likely be a boost in the local talent pool. The company’s focus on server and storage technology could attract skilled professionals, leading to knowledge exchange and skill development.
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