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• W1535717191 abstract "Corporate Strategy At a time when technology companies in United States and Europe are accelerating transfer of high-cost jobs to lower-cost markets to remain globally competitive, IBM Corp. is retaining nearly 2,000 engineers at its research and development lab in pricey Germany. If you've been following outsourcing trend, which began with lower-paid IT programming jobs and has since spread to more lucrative engineering and science positions, you must wonder why. Germany is, after all, a country known for its high taxes, strict labor laws and long vacations, all of which are missing in fiercely rival Chinese and Indian markets. The Boblingen lab, IBM's first in Europe and one of group's biggest, was launched in 1957 by founder Thomas Watson who, at time, believed his company should develop and manufacture products in markets where it had large customer bases. Germany, France, Switzerland, and United Kingdom were among those markets in Europe. In recent years, however, IBM has either closed or sold many of its computer manufacturing operations in these markets. In their place have come China and India, where IBM is also expanding its R&D activities. Nevertheless, Herbert Kircher, director of development and chairman of IBM Deutschland Entwicklung GmbH, sees a continued strong role for his lab as well as those in France, Switzerland and U.K., not to mention United States. An Indian engineer may cost one-third of what an engineer costs in Europe or U.S., and we need to take advantage of this cost factor as we are doing, Kircher said. But we will not exit high-cost regions such as Europe and U.S. need balance. Expertise and Experience Key strengths of German lab are expertise and experience. We are able to retain highly skilled, highly motivated engineers, German research director said. Unlike IBM engineers in India and China who work for company for an average two years, engineers in Germany stay around 10 years, with some as many as 20 years, bringing with them a lot of project and customer experience as well as market know-how. Staff turnover at German lab is around 1 percent per year. And few who leave seldom quit IBM but rather move to U.S. where they continue to work for company. Many of our people are regularly approached by competitors who offer more pay and other benefits but they stay because they like their work and their working environment, Kircher said. We attach great importance to a corporate culture that honors values and high performance. Whereas IBM R&D executives in China or India, for instance, are often forced to assign development projects to engineers with two years' experience or less, Kircher relies on what he calls the right of engineers. He likes to bring engineers and researchers who are fairly new to company and have fresh ideas together with staffers with a wealth of experience. This mix contributes to our success in developing new products, he said. To make sure innovative ideas don't die in committee, IBM lab in Boblingen holds an annual, day-long event for engineers and researchers who have been with company less than five years to present their ideas to senior executives. …" @default.
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• W1535717191 date "2007-01-01" @default.
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• W1535717191 title "IBM's Germany Lab Holds onto Skilled High-Paid Engineers" @default.
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