IBM Shifts Global Procurement Headquarters to China

IBM Shifts Global Procurement Headquarters to China

IBM (NYSE:IBM) today announced the relocation of its global procurement headquarters to Shenzhen, China as the company continues its strategy to draw more efficiently on its global capabilities and capitalize on emerging market opportunities.

The decision to move Chief Procurement Officer John Paterson’s office from Somers, NY, to China marks the first time the headquarters of an IBM corporate-wide organization has been located outside the U.S. This move illustrates a shift underway at IBM from a multinational corporation to a new model — a globally integrated enterprise.

“In a multinational model, many functions of a corporation were replicated around the world — but each addressing only its local market,” said Mr. Paterson. “In a globally integrated enterprise, for the first time, a company’s worldwide capability can be located wherever in the world it makes the most sense, based on the imperatives of economics, expertise and open environments.”

Once this shift occurs, it requires a focused and thoughtful approach to simultaneously transfer knowledge and build the management capabilities to lead the work. Mr. Paterson is in Asia to do just that; to expand and strengthen IBM’s internal procurement skills in the region; develop leaders and prepare them to take on global roles.

Read the complete Press Release