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Tech

Revenues at IBM Client Innovation Centre in Leicester up 30% at £89 million

Leicester operation tests software, provides software support to IBM customers and manages IBM projects

Bernard Szczech runs the IBM Client Innovation Centre in New Walk, Leicester

One of Leicester’s newest businesses has seen its revenues rise around 30 per cent on the back of strong growth.

Turnover at the IBM Client Innovation Centre, in New Walk, reached almost £89 million last year, new accounts show, compared to almost £68 million the year before.

However pre-tax profits dropped by around 15 per cent to £2.5 million, due to changes in accounting procedures.

Salaries accounted for more than £60 million of the annual costs, with subcontractor fees making up more than £12 million.

IBM announced plans to launch the new operation in the city four years ago, to test software, provide software support to IBM customers and manage IBM projects.

Much of the work now done in Leicester was relocated back to the º£½ÇÊÓÆµ from countries such as China and India.

Council support – including a £1 million grant – played a big part in the multi-national picking Leicester as a base for the innovation centre, along with the city’s good transport links, low costs, and good recruitment pool, including Leicester, De Montfort and Loughborough universities.

 

Globally IBM is placing a growing emphasis on cloud technology, with Leicester playing its own part in that process.