IBM Launches Development Centers in India and China to Meet Growing Global Client Demand for New SOA Business Services

More Than 1000 IBM Experts to Develop Industry-Specific SOA Services

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BEIJING & PUNE, INDIA - 31 Oct 2006: At client events held here today, IBM (NYSE: IBM) announced the opening of two new development centers located in Beijing, China; and Pune, India. These SOA Solutions Centers will develop, manage and deliver industry-specific business services that solve some of the most pressing business issues facing IBM clients. As a result, these centers will serve as the foundation of a new, globally integrated model for delivering SOA-based services.

Service Oriented Architecture (SOA) allows companies to create new business services easily across their existing IT infrastructure. For example, a new business service can track inventory through the design, manufacturing, supply and payment business processes, all of which were previously disconnected. The new IBM SOA Solutions Centers will take advantage of this fundamental shift in technology which allows companies to manage business processes without worrying about the constraints of technology. The SOA services market is expected to reach $160 billion by 2008.

The SOA Solutions Centers will focus on addressing individual business problems common to given industries. Using IBM's WebSphere Business Services Fabric -- based on technology recently acquired from Webify Solutions -- the Centers will create and manage a portfolio of repeatable, industry-specific services components. The industry-specific tools and models from Webify make it easier to deliver business services more quickly and consistently than previously possible.

The center in Pune will initially develop repeatable business services for the insurance industry, including home and auto rate quoting as well as health care business services, such as claim filing and response. Resources from IBM labs in Hyderabad, India will also support development activity in Pune. The Beijing Center will develop services for governments including financial and case management as well as services for banks including real time, risk-based loan pricing.

Approximately 500 IBM SOA experts will focus on these activities at each center.

"SOA is gaining traction with clients in many industries across the globe," said Ginni Rometty, senior vice president, IBM Global Business Services. "Clients are looking for faster, more efficient ways to embrace this approach for their particular industry. These new SOA Solutions Centers will serve as a resource to offer clients reusable industry-specific components and services they need to quickly solve their most important business issues."

IBM has trained more than 90,000 consultants to work with clients on SOA. These consultants help analyze enterprise operations using unique tools and techniques, such as Component Business Modeling, IBM Service Oriented Modeling and Architecture, the IBM Service Integration Maturity Model, The IBM SOA Assessment Service, and the IBM SOA Business Value Analyzer. This analysis helps companies understand how to leverage SOA and the industry-specific assets developed by the new SOA Solutions Centers.

The new SOA Solutions Centers are integrated with the IBM Global Business Solutions Center, located in Bangalore, India, which combines IBM strengths in business consulting, research, software, systems, engineering, and emerging technologies to create business solutions in more than 50 key business areas such as Consumer Driven Supply Chain Optimization, Banking Risk and Compliance and Retail Merchandising. These business solutions will be fully SOA-enabled at the new SOA Solutions Centers, and delivered consistently worldwide though IBM's global network of services delivery centers in more than 20 countries.

SOA Client Successes

A recent study by the IBM Institute for Business Value entitled, "The Business Value of Service-Oriented Architecture," found that 97 percent of clients justified SOA projects based on cost savings and impact to profitability. After completing initial projects 51 percent of clients saw revenue growth as a direct result of SOA.

One IBM customer, Consorzio Servizi Bancari, was founded in 1970 as an information technology (IT) outsourcer that small banks rely upon to handle the processing of customers' banking transactions. To build its business, Consorzio Servizi Bancari selected an IBM mainframe using the Customer Interaction Control System (CICS) and has since grown into one of Italy's most trusted providers of outsourced IT services for more than 60 small- to medium-sized banks. Today, Consorzio Servizi Bancari continues to rely on its mainframe, IBM software and consulting services to support seven million users and process 12 million banking transactions per day, including those transactions that run through its 45,000 distributed terminals, including automated teller machines. Consorzio Servizi Bancari is evolving its IT infrastructure into an SOA that will more quickly and easily link information throughout the company and its customers faster and more easily than previously possible.

According to Vittorio Lombardi, CEO of Consorzio Servizi Bancari, "To maximize our existing technology investments in the IBM mainframe servers and improve customer service in an increasingly competitive market, we turned to IBM software and consulting services to help design and build our service oriented architecture. We realize that the powerful combination of SOA on the mainframe provides us with the foundation that will enable us to evolve and grow our company, better support our customers and adhere to government banking regulations, while more closely aligning technology with business goals."

Also, Royal Automobile Club of Victoria (RACV) Ltd., a 100 year-old membership organization providing advocacy, motoring services, social and commercial products to two million Australian members and customers, embarked on its SOA initiative to improve member satisfaction and streamline business processes. A rigid and complex IT architecture with a number of business processes duplicated across numerous lines of business had an impact on both productivity and responsiveness to members.

"We expect SOA to enable us to address a number of significant challenges and provide a positive member experience which is a key priority for us," said Anne Flanagan, chief financial officer, Royal Automobile Club of Victoria (RACV) Ltd. "Using an SOA approach to integrate the various products, including Membership, Emergency Road Service and Insurance, RACV is developing a Single Customer View application which is expected to significantly improve member service. Just as importantly, we expect to have a flexible system that is adaptable to market changes, where costs to enhance or develop new products are reduced and we are able to bring them to market more quickly."

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