In what may be an invigorating trend for US information technology providers, IBM recently announced it plans to open an IBM 'Global Delivery Center' on the campus of Michigan State University in East Lansing. The goal for the center is to modernize legacy applications used by state and local governments, as well as colleges and universities.

In addition, IBM and MSU are planning to expand out to help modernize IT systems at companies based in the U.S. in the healthcare, telecommunication, and other industries.

IBM mainframes and AS/400 systems still have a healthy user base in the government, university and healthcare sectors-- and the software applications that run on these platforms are long overdue for an overhaul (not to mention all those greenscreen terminals). Here at i3 Business Solutions, we work with these customers all over Michigan.

Here's an interesting take on this development from Steve Hamm at BusinessWeek:

"While the Indian outsourcing community is flipping out about the Satyam scandal, IBM, which has a major presence in India, is opening its newest service delivery center in….East Lansing, Michigan. IBM is setting up an unusual sort of delivery center on the campus of Michigan State University. The company plans to hire MSU students and graduates, plus others, to develop software applications and modernize computing systems for government agencies and universities. It plans on hiring 100 people by June and 1,500 eventually. An IBM spokesman said this isn’t a low-cost labor play; it’s about the talent. But I’m betting salaries for software programmers are a lot cheaper in East Lansing than they are in Somers, New York; Boston; or Silicon Valley—where IBM employs a lot of programmers."

All I can say is: Go Spartans! 

via The New India: Michigan? - BusinessWeek (see the reader comment as well)

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