IBM to add 700 service jobs to Hungary centre

IBM to add 700 service jobs to Hungary centre With an investment of $35.54 million, the center will cater financial services, HR, procurement, and call centre services.

Friday, March 04, 2005

BUDAPEST: Computer giant IBM will create 700 service centre jobs in Hungary in a 6.5 billion forint ($35.54 million) investment, the Ministry of Economic Affairs said.

IBM will create mostly financial services, human resources, procurement, and call centre positions in Hungary, the ministry said in a press release.

Luring IBM, which already operates a major services centre in Hungary, is a victory for the Hungarian government which has been working to bring high skill, added value jobs to the country at a time when many low skill manufacturing jobs are moving east.

IBM had been among the big manufacturers to leave after it closed a hard disk unit in 2002 and laid off 3,700 workers.

German business software firm SAP recently announced plans to locate a services centre to Hungary while General Electric has been operating a major services division in Hungary for years.

Keeping manufacturing jobs has proven difficult as rising wages and a persistently strong forint lowered Hungary's compebreastiveness versus its neighbours while the lack of available labour has also made it difficult to create large manufacturing capacity.

The government's efforts to attract new foreign investment paid off in 2004, when foreign direct investments rose to 2.33 billion euros in the first nine months from 1.75 billion euros a year earlier.