Made in Germany:
IBM expands local IT services
IBM opens an IT Services Centre in Magdeburg / Up to 300 new jobs in the IT sector created
Magdeburg – 27 June 2013: with the opening today of the IT Services Centre in Magdeburg Germany, up to 300 new IT sector jobs will be created in our region in the next three years. The Centre is part of a global initiative by IBM to systematically strengthen its local presence by offering IT services locally, but it will serve international clients as well.
In the new IBM Services Centre high-value services will be offered. These include development and maintenance of IT applications as well as consulting and systems integration for local and international clients. In this way, IBM can satisfy its customers' growing demand for flexible solutions which enable them to make optimal use of the potential offered by innovations such as big data, cloud and mobile business technologies.
The IBM Services Centre in Magdeburg offers technical know-how and expertise locally in Germany. At the same time, the Centre works hand-in-hand with IBM's global network and benefits from innovations developed in IBM Services Centres around the globe. Due to the close collaboration between the Centre in Magdeburg and the respective regional and local authorities in Saxony-Anhalt and Magdeburg, economic activity in the region will also be stimulated. The new Centre offers attractive jobs for both recent graduates and experienced professionals.
Magdeburg was deliberately selected as the ideal location for a new IBM Service Centre in the middle of Germany due to the close proximity of educational institutions focused on technology. This is because IBM is interested in nurturing the potential of highly-trained skilled workers in the Saxony-Anhalt capital region and thereby creating a talent pool that can be utilised concurrently as a career springboard for other IT jobs both inside and outside of IBM. In addition, IBM promotes technological development, science and innovation and is committed to the development of IT skills by high school and college students for local job markets.
"We want to offer our national and international clients high-value IT services, 'Made in Germany', and we believe Magdeburg offers the ideal conditions to do so," says Gregor Pillen, head of the Corporate Consulting Division of IBM Global Business Services. "At the same time, our commitment to Magdeburg demonstrates our optimism about Europe, since local Services Centres are currently being set up in numerous European locations."
This new company in Germany serves as a local representative for the worldwide global delivery of IBM services and will be incorporated into their European business strategy. With formation of this company, for the first time in Germany, a local presence within the IBM Global delivery model will be created to meet the specific demands of the German market. The Centre joins a globally integrated network of experts, which offers extensive technical and industry expertise, as well as a wide range of services to public and private clients.
Minister-President Reiner Haseloff: "The investment by IBM in Magdeburg is a highly gratifying endorsement of Saxony-Anhalt as an attractive business location. Of all the Eastern German states, ours has the greatest appeal for foreign investors. IBM is yet another world-renowned company that has chosen this location. In addition to the jobs created directly by IBM, their investment provides numerous opportunities for generating additional regional economic growth and overall employment. The commitment of IBM also promises unprecedented career opportunities for computer science graduates from the universities and colleges of Saxony-Anhalt."
During the next three years, the IBM Services Centre in Magdeburg will be employing up to 300 technical graduates and experienced workers in the fields of computer science, engineering, mathematics and science. Also, the IT Services Centre offers internships and supervision of student theses, to convince up-and-coming talent from the surrounding colleges and universities to remain in the region.
IBM continues to work closely with the local university departments and supports the further evolution of computer science curricula to ensure the best possible education for the next generation of IT talent. Through the increasing use of information technology, company business models and staff requirements are undergoing change. With that in mind, particular emphasis will be placed on developing sought-after skills in areas such as business analytics, process innovation and application development. In collaboration with six universities and colleges in the region, recruiting activities are being initiated at this very moment.
IBM announces IBM Services Center in the Dutch province of Groningen
Creating up to 350 new tech roles for local market
IBM announced June 19th a new services center in the city of Groningen, The Netherlands, that will create up to 350 technical IT roles in the coming three years enabling IBM to deliver an industry-leading range of innovative technology services to clients across The Netherlands.
The center will offer IBM clients in The Benelux locally-based skills and technical expertise in the Dutch language to drive innovation and adoption of new technology, and provide direct proximity. The new center joins IBM's globally integrated capability network which delivers deep technical and industry expertise to a wide range of public and private sector clients.
The rise of Big Data, analytics, cloud and mobile business technologies are changing the way companies work and interact with their customers. To address the increasing demand for flexible software capability that harness the benefits of these new technologies, the new IBM Services Center: Groningen will provide local IBM clients with high value application development, application maintenance and systems integration services.
IBM Services Center: Groningen, a wholly owned subsidiary of IBM, is being developed through a collaboration with the city and Province of Groningen, Hanze University of Applied Sciences, University of Groningen and the University Medical Center Groningen (UMCG). It is anticipated that its development will stimulate economic activity in the region.
"This job creation investment reflects IBM's view of client demand for high-value technology services, drawing on the local talent pool to drive IBM's competitive positioning in the Dutch market," said Luq Niazi, Global Business Services Leader, IBM Benelux. "The center also highlights IBM's commitment to partnering with local universities and academic institutions to deliver high value skills that are highly relevant in today's marketplace."
During the next three years IBM Services Center: Groningen will employ technology graduates and experienced IT professionals with backgrounds in computer science, engineering, mathematics and science. The center will also offer internships and graduate assignments to harness the best IT talent from across the city and region.
"This is a perfect example of how collaboration between the private sector, knowledge institutes and the government creates new jobs and generates income", says Dutch Minister of Economic Affairs Henk Kamp. "This investment is also giving students the opportunity to gain the knowledge and learn the skills that businesses like IBM need."
Yvonne van Mastrigt Regional Minister in Groningen said, "Today's announcement strengthens our competitiveness for the best talent and sends a strong message that Groningen is a great place to study, work and build an exciting future. The center will continue to position Groningen as a leader in the global technology sector as we work alongside IBM to create a first-of-its-kind for The Netherlands."
In an on-going relationship, the center will help Hanze University of Applied Sciences with computer science curriculum development to cater for changing business needs and the demands of an evolving labor market by providing enhanced higher education computer science programs. The University of Groningen and University Medical Center Groningen will participate with the center through innovative research projects in important regional domains such as healthcare and energy.
The programs will ensure the next generation of IT talent undergoes world class training -- equipping students with advanced, high demand skills that include advanced analytics, process innovation and application development.
The IBM Services Center: Groningen is the latest in a series of job-creating investments IBM has made this year in technology, science and innovation. This builds upon IBM's efforts to build technology skills for primary and secondary school students as well as train college students for technology jobs in local markets.
Recruitment for the 350 new positions will start during a recruitment event on June 26 at Hanze University of Applied Sciences.
GKN Driveline Expansion Continues
GKN Driveline continues to expand rapidly in China with the expansion of a key manufacturing facility by Shanghai GKN Driveshaft Co., Ltd. (SDS). With an investment of approximately £15 million ($23 million), a new 11,000-square-meter precision forge facility in Wuhan will produce high-accuracy components for driveline systems with an annual capacity of 11 million precision parts. The expansion, driven by customer demand, will mean more capacity and capability to support increasing demand from vehicle manufacturers.
"Vehicle manufacturers are continuing to expand across China, the world's largest vehicle market and the Wuhan plant is located close to customers in the center of China," said Andy Reynolds Smith, CEO GKN Automotive. "It will ensure we are ideally positioned to support the growth in the Chinese market with products produced locally, coupled with a high level of customer service, to further strengthen our customer support."
China is a key growth market for GKN Driveline with vehicle production in the country expected to reach 22 million units by 2014 and 30 million units by 2020.
MIGA Reports Continued, Strong Interest in its Political Risk Insurance
World Bank Agency Reports $2.8 Billion in New Issuance for Fiscal Year 2013
WASHINGTON, DC, July 1, 2013 — The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance arm of the World Bank Group, announced year-end results today demonstrating sustained growth in support of foreign direct investment (FDI) in its developing member countries. For the fiscal year ending June 30, 2013, the Agency issued a record high of $2.8 billion in new investment guarantees insuring projects that will support economic growth and poverty reduction. Many of the projects will be transformational for the host countries.
At $1.5 billion, representing more than half of new business, the bulk of MIGA's guarantees issued this year support investments in sub-Saharan Africa. Projects in the region cover a broad swath of sectors, but MIGA's support to the energy sector is the most significant: a large share of MIGA's new issuance in the region was for projects that will address the continent's power deficit, which has a significant impact on competitiveness.
MIGA's support to post-conflict and fragile countries is noteworthy this year, continuing an important trend. The Agency has tripled its exposure to post-conflict and fragile countries in the past three years. This year, MIGA also launched its Conflict-Affected and Fragile Economies Facility that will use donor contributions together with MIGA guarantees to insure even more investment projects in places affected by conflict.
MIGA continues to see strong demand in the Middle East and North Africa and insured projects in Egypt, Jordan, and Libya. Since the onset of the Arab Spring, MIGA has made a concerted effort to reach out to investors targeting the region to maintain and encourage FDI in this period of transition. MIGA also insured three projects in the West Bank and Gaza through its West Bank and Gaza Investment Guarantee Trust Fund.
The Agency has actively sought to support banks and other financial institutions in Europe and Central Asia as they have been affected by the euro-zone crisis. MIGA guaranteed several projects in the region's financial sector this year.
MIGA supported investments in the energy and manufacturing sectors in Latin America and Asia this year, in countries such as Nicaragua, Afghanistan, Bangladesh, Pakistan, and Vietnam.
The Agency's new hubs in Asia and Paris have contributed to the successful fiscal year results.
A number of the projects MIGA guaranteed this year also involved the participation of the World Bank and IFC. As all members of the World Bank Group seek for innovative ways to boost development while harnessing the resources of the private sector, MIGA has increased its product range. MIGA has seen robust uptake in its non-honoring of financial obligations cover, and this year expanded its scope further to include state-owned enterprises.
"We're very pleased with these achievements—especially as we're celebrating our 25th anniversary this year," said MIGA's Executive Vice President Izumi Kobayashi. "The Agency has evolved and grown since our founding, staying relevant to the market and countries' needs."
"On a personal note," she added, "As I end my appointed tenure at MIGA, I'm proud to have worked for an organization that plays a critical role in in helping investors and lenders reach some of the world's most challenging markets—while having a significant impact on people's lives."
India's Decision to Reevaluate PMA Rules a Step in the Right Direction
WASHINGTON (July 09, 2013) - ITIF Senior Analyst Stephen Ezell reacts to the announcement that India will be pausing and reassessing its Preferential Market Access (PMA) program:
"The announcement by the Indian Prime Minister's office that the government will be conducting a four-week review and reevaluation of the PMA and its potential impact on manufacturing and foreign direct investment in India is good news for the international economy and ultimately the people of India. As originally designed, the PMA mandate dictated that specified percentages of certain computer, telecommunications, and electronic goods "with security implications" sold in India would have to be manufactured locally, a requirement that could have eventually affected as much as half of the $50 billion spent annually on ICT products and services in India.
ITIF praises the Indian government for rethinking the PMA-and hopes that the four-week review of the mandate turns into a full abandonment of the policy. But ITIF also calls on India to reevaluate its more recent broader embrace of "innovation mercantilist" policies that have sought to favor local producers at the expense of open global competition. Examples include India's local content requirements for wind turbine and solar cell manufacturers, lax intellectual property protections for software and pharmaceutical developers, and the exclusion of foreign ICT vendors from participating in India's $4 billion national fiber optic network project.
These policies are particularly concerning because they threaten to disrupt the strong trade relationship that exists between India and the United States. The United States represents India's second largest export market (and the market with which it runs the greatest trade surplus), with goods and services traded between the two nations reaching $86 billion in 2011. Furthermore, these policies stymie domestic innovation while risking the introduction of similar mercantilist policies by other nations that could ultimately limit Indian exports and future economic growth.
It is ITIF's hope that this announcement regarding the PMA is the beginning of a policy shift for India that focuses on promoting domestic innovation and business development through investments in education, infrastructure, and R&D. This will lead to the development of strong national industries that can successfully compete in the global market place while not unduly hampering global competition. This shift in philosophy is in the best interest of the global economy, the United States, and the people of India."
The Information Technology and Innovation Foundation (ITIF) is a non-partisan think tank whose mission is to formulate and promote public policies to advance technological innovation and productivity internationally, in Washington, and in the states. Recognizing the vital role of technology in ensuring prosperity, ITIF focuses on innovation, productivity, and digital economy issues. Learn more at www.itif.org.