IBM To Invest $300 Million In Costa Rica Facility
First Published Thursday, 10th May 2012 08:03 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
International Business Machines Corp. (IBM) said it will invest $300 million in a new delivery center in Costa Rica over the next 10 years, affirming the country's position as a strategic services hub for the technology company.
IBM plans to employ up to 1,000 people at the facility by 2014. The center will support clients in IT security, data storage, business analytics, cloud computing and other services.
The Armonk, N.Y., company has benefited from its push toward higher-margin, complex businesses such as business analytics, and away from crowded fields where companies only can compete on price. While that bet has been paying off, worries have emerged that the macroeconomic environment is hurting spending on technology, and IBM's revenue has been lighter than expected for the past couple of quarters.
Last month, IBM reported its first-quarter profit rose 7.1% as the tech heavyweight reported higher revenue from its software and technology services business, but lower hardware sales.
IBM shares were down by 14 cents to $201.09 in recent trading. The stock is up roughly 9% since the start of the year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; email@example.com