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IBM Launches Major Services Initiative in China
To Bring IBM's Global Information Technology Services Expertise And Capabilities To China

Chairman, President and CEO Samuel J. Palmisano has launched a major initiative to bring IBM's global information technology services expertise and capabilities to China to enable company and government innovation in support of the country's increased focus on developing its services industry.

As part of that initiative, Mr. Palmisano announced that IBM will:

• Work with the Ministry of Education to introduce a services science curriculum within Chinese universities

• Coordinate development of a pilot program with the Ministry of Health to use information technology to improve the quality of regional medical services throughout the country

• Expand industry-specific business services through the use of Services Oriented Architecture (SOA)

• Increase focus within the China Research Lab on services specifically linked to small and medium-size businesses.

"IBM has a long history of collaborating with our Chinese clients and with the government of China in support of the country's rapid economic development," Mr. Palmisano said. "This services initiative will strengthen our role as China's innovation partner based on our portfolio of the world's best technology combined with our business management and services skills. The announcements we are making today strengthen our ability to help develop future services skills in China while providing solutions now to meet the needs of the evolving Chinese economy."

IBM currently has 8,300 employees in China. Third quarter revenue increased 27 percent compared to the same period last year. Announcement of the services initiative caps a month in which IBM has:

Announced the transfer of its global procurement headquarters to Shenzhen;
Created a $180 million China Investment Fund in an alliance with Lehman Brothers;

Opened an SOA Solutions Center in Beijing.

Mr. Palmisano cited the results of a recent IBM study of 100 China CEOs focused on innovation in China. Participants noted the importance of integrating business processes and technology to achieve an innovative business model that puts them ahead of competitors. IBM's services initiative will enable IBM clients to achieve such integration by adapting best practices from IBM's global operations to meet the specific requirements of the China marketplace.

"We believe this 'Services Innovation -- the New Vision' aligns IBM China with a key priority of the Chinese government, which is the development of a services industry that acts as a catalyst for innovation by both government-owned and private businesses," said Henry Chow, General Manager, IBM Greater China. "The announcements of the past month show IBM's momentum in China and the importance of China to our company. The services initiative we are announcing today will allow us to continue that momentum as we collaborate with our customers in China so that they can better serve their customers and continue to grow their businesses."

Ministry of Education

A Memorandum of Understanding between IBM and the Ministry of Education will lead to the creation of a new academic discipline within Chinese Universities -- Services Science, Management & Engineering (SSME). Through case studies of real businesses and scientific programs, particularly in information technology and business services, the new curriculum will focus on the issues involved in aligning people and technology for both services providers and services clients.

About ITSG News Desk
ITSG News Desk trawls the world's news sources for stories and updates on IT solutions that deliver ROI by reducing costs and/or cutting time-to-market, as well as other products and services that can produce bottom-line gains for enterprises.

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