In order to cultivate China market, IBM moved its global sourcing
headquarter from New York to Shenzhen, located in south China. This is the first
time that IBM is moving a major business sector to China and it shows the
company's ambition to grab potential business opportunity in newly developed
markets. The move will enable IBM to get closer to the core of supply chain as
well as to meet customers' need. Besides, it can save more expense and cost of
the company, which is aiming to position itself as an international integration
company. In IBM's $40 billion sourcing budget each year, 30 percent comes from
Asia, half of which come from China. Eyeing t two fastest growing economics
bodies-China and India, IBM started to move Asia-Pacific regional office from Tokyo to Shanghai and also moved software development and
customer service to India. According to Ministry of Commerce, China, China
technology exporting value has reached $220 billion and accounted for 28 percent
of total exporting value.