IBM chief executive Sam Palmisano has called on major
corporations to become “globally integrated enterprises”, with
business strategy, production and management around the
world.
Writing in the Financial Times, Palmisano says, “The
globally integrated enterprise is an inherently better and more
profitable way to organise business activities – and it can deliver
enormous economic benefits to both developed and developing
nations.”
His declaration comes just days after IBM announced plans to
invest $6bn (£3.35bn) in India.
Palmisano contrasts the “globally integrated enterprise” with
the way big businesses have traditionally built factories overseas
but kept research and development and other key areas based in the
firm’s home country.
Decisions to base business activity around the world are “not
simply a matter of offloading non-core activities, nor are they
mere labour arbitrage – that is, shifting work to low-wage
regions”, Palmisano says.
Unless corporations shift to a new global model, they face an
anti-globalisation backlash, he warns. Unease about globalisation
could develop into a full-scale assault on big business, bringing
with it the election of governments that would attempt to crack
down on corporations, Palmisano says.
“The alternative to global integration is not appealing: left
unaddressed, the issues surrounding globalisation will only grow...
People may ultimately choose to elect governments that impose
strict regulations on trade or labour, perhaps of a highly
protectionist sort,” the IBM chief says.