IBM China ERP Sales wobble

SHENZHEN, CHINA: Under pressure from local competitors, US-based IT giant IBM saw a big decline in its ERP sales in China in the first half of 2009, tells a trading media report.

To secure its leading position and maintain its competitive edge, IBM has been singing another tune by cutting its prices sharply when bidding for ERP projects in China since early this year. Meanwhile, IBM GBS (Global Business Service) started to cut jobs this week.

Since the eruption of the global financial crisis, IBM has been managing to keep its business sizzling globally by shifting its focus to IT services. 

In China, IBM, along with other foreign ERP suppliers, has been facing fierce competition from local players such as Kingdee International Software Group Co., Ltd., UFIDA Software Co., Ltd., and Inspur Electronic Information Industry Co., Ltd., which have been building their competitive edges on lower prices.

IBM GBS has set up branches in Shenzhen, Xi'an, and Shenyang, aiming at manufactures, high-tech companies, and major state-owned companies there.