BRIC Nations Fastest Growing International IT Markets

Recognising India and the other three BRIC countries -- Brazil, Russia and China -- among the fastest growing IT markets globally, US-based technology giant IBM anticipates over two times the worldwide growth rate from its operations in these regions in the next four years.

The global major, which recorded total revenue of 91.4 billion dollars in 2006, foresees an opportunity of 150 billion dollars by 2010 in the four BRIC countries alone.

Collectively, Brazil, Russia, India and China contributed 4.5 billion dollars in 2006, representing nearly five per cent of the the company's annual revenue. "The emerging markets of India, China, Brazil and Russia are among the fastest growing IT markets in the world and grew at 16 per cent in 2006," IBM's Chief Financial Officer Mark Loughridge said at an analyst conference to discuss the company's fourth quarter results.

While the company's India and Russia businesses witnessed growth of over 30 per cent in the quarter ended December 2006, China and Brazil registered growth rate of 18 per cent and nine per cent respectively.

The company CFO said IBM was continuing to invest to strengthen its leadership position in the emerging markets.

IBM has expanded capabilities to its centres in India, Brazil and Argentina, while adding 20,000 employees in the low cost countries, he said. IBM's India headcount is estimated to be at 50,000 for the year 2006. "We continue to invest to build capabilities in these countries (BRIC markets) to address the fast-growing domestic market opportunities and to enhance IBM's globally integrated operations," Loughridge told the analysts.

The four markets collectively witnessed an annual growth rate of 18 per cent in the quarter. With a growth rate of more than two times the worldwide rate, the BRIC markets have an opportunity to grow to 150 billion dollars by 2010, Loughridge said.

IBM's worldwide fourth-quarter revenue rose seven per cent to 26.3 billion dollars, while its income from operations rose eight per cent to 3.5 billion dollars in the period ended December 2006.

Asia Pacific, which delivered revenue growth of 5 per cent in the quarter, remained strong led by India and China, the company CFO said.

"IBM had a terrific quarter and a good year with record cash performance, profit and EPS as well as record payouts to shareholders. We are well-positioned in the growth areas of a changing IT industry, focussed on our evolving business model and poised for long term success for our clients and shareholders," IBM Chairman, President and CEO Samuel J Palmisano said in a statement.