In a recent press release, International Business Machines (IBM) announced the launch of its Analytics solution center in China. IBM is trying to address the need for growing analytics capabilities and help its clients strengthen their business systems, which will in turn enhance their decision making capability.
 
The new analytics center located in Beijing, China will gather experts from analytics and optimization, mathematics modeling, software engineering and architecture research and consulting departments of IBM. The company has selected China, as the country is a global center for economic development and has a good talent pool of professionals, essential for the analytics solution center.
 
This solution center will support IBM’s clients in the Greater China region, and resolve business problems relating to hardware, software, consulting services and research. It will also focus on supply chain management, water management, transportation and traffic management issues.

We believe this is a very lucrative business proposition for IBM, as the company will be working for the Chinese government, which creates a win-win situation by generating substantial business for the company and by producing high value local jobs.
 
We believe the introduction of this new analytics center is inline with the company’s business strategy. IBM opened its first two analytics solution centers in Berlin and Tokyo this year, and plans to open other centers in London, New York and Washington, D.C.

The company also plans to have 4000 global analytics workforce professionals. It seems that the company is really focusing on its analytics business and China as a global delivery destination for the company.
 
In the month of July, IBM launched a cloud computing hub in Wuxi, China. Wuxi may be a small city in China, but for IBM the city has great importance, as the company is making a move to make it a global cloud computing hub, and will attract billions of dollars of government funding.

So it can be inferred that China is becoming a preferred destination for IBM, due to its proactive government, and skilled workforce. Besides, we believe Business Analytics and Optimization and Cloud Computing will help drive the next cycle of growth and productivity for the company and its clients.

Read the full analyst report on “IBM”
Zacks Investment Research