Mr Lim Hng Kiang at the Launch of IBM Global Services Integration Hub East, 5 Dec 2011

SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE LAUNCH OF IBM GLOBAL SERVICES INTEGRATION HUB EAST ON MONDAY 5 DECEMBER 2011, 11.00AM

Mr Frank Kern, Senior Vice President, IBM Global Business Services

Distinguished guests,

Ladies and gentlemen,

Introduction

Good morning. I am happy to join all of you to celebrate the launch of IBM Global Services Integration Hub East. Today marks yet another significant step forward in the partnership between Singapore and IBM. Singapore is now the primary hub for IBM’s global business services in Asia, providing leadership and decision making in end-to-end process and engagements.

A rapidly-changing infocomms industry

The infocomms industry remains a key sector in our economy. In 2010, it generated over S$70 billion in revenues and employs close to 150,000 people[1].

It is also an industry that sees rapid and frequent changes. In the area of IT services, companies traditionally ran decentralised businesses where all their contracting, delivery and management responsibilities were carried out in-country.

As the global business environment becomes more complex and intertwined, IT services companies are now constantly confronted with various challenges.

One such challenge is the ability to consolidate all these functions in a single location through the use of new technologies such as cloud computing, while delivering the services seamlessly to their entities around the world.

IBM’s Global Services Integration Hub – a testament to Singapore’s role as a Global-Asia Hub

Over the past century, IBM has long been recognised as an industry bellwether for being able to anticipate and prepare itself for new trends in the information and technology arena.

It is therefore fitting that IBM is spearheading the development and adoption of a new model for the IT services industry, through its Global Services Integration Hub in Singapore. With this new business model, IBM will be able to centrally control and manage its global IT and knowledge resources for Asia Pacific from Singapore.

Singapore’s proximity to IBM’s global services delivery hubs in the region, as well as our intellectual protection regime and base of IT professionals with deep technical and domain expertise will provide IBM a vantage point in orchestrating its services delivery in Asia, and brings about significantly greater operational efficiencies for IBM.

By locating in Singapore, IBM will also be able to develop differentiating competencies that will give it an edge in the global marketplace. It will be able to gain access to sophisticated demand generated by Singapore’s established industry verticals, from healthcare to manufacturing to logistics and finance. IBM can then use to develop differentiated and customised IT solution templates.

To this end, our successful partnership with IBM is a testament to Singapore’s attributes – a trusted business environment, a strong talent base and having excellent connectivity to regional and global markets. Our ability to continually develop and enhance these attributes constitutes a cornerstone of Singapore’s role as a Global-Asia Hub. We want to serve as the home base for MNCs and global mid-sized companies to tap into pan-Asian growth opportunities as well as for Asian firms to access global markets beyond Asia.

Conclusion

Let me conclude by extending my warmest congratulations to the management and staff of IBM on the successful establishment of its Global Services Integration Hub East. We are honoured that IBM has chosen Singapore as your base to drive the next phase of your growth. I look forward to the many more years of successful partnership between Singapore and IBM. Thank you.

[1]Source: Infocomms Development Authority