IBM
- International Business Machines Corporation, or IBM, is a multinational technology corporation based out of New York, USA. IBM operate primarily as a software/hardware producer, while also offering consulting services to businesses. IBM has a headquarters in Heredia, close to San Jose, the capital of Costa Rica. IBM’s Costa Rican branch operates primarily in customer and technical support, as well as software development. IBM’s branch in Costa Rica opened in 2004, and has sense been growing rapidly. In 2009 it was announced that they would hire 2000 employees, and as of 2012, IBM stated they planned to invest $300 million USD into Costa Rica over the next ten years. In 2019, another $21 million USD was invested into IBM’s digital security services in Costa Rica. While Costa Rica does not serve as a hardware manufacturing headquarters for IBM, their Heredia headquarters serves as the strategic center for IBM in Latin America.
The location of IBM’s Costa Rica headquarters in Heredia.
2. Due to the digital nature of IBM’s operations in Costa rica, there are relatively limited environment impacts from their operation. Socially, IBM currently employs at least 5,000 individuals in Costa Rica, making them a significant employer, particularly in Heredia. They are one of the largest software employers in the country, and offer many opportunities to Costa Rican’s who are entering the field. There average salary for employees ranges from aproximately $36,000 USD for a janitorial position up to $470,000 USD for executive positions. Skilled position workers at IBM in Costa Rica generally make well above the median salary, making the positions very desireable for many Costa Ricans.
3. IBM in Costa Rica is represented best by the framework of neo-liberalism. One large reason for IBM’s position in Costa Rica is the salaries that they pay to Costa Rican workers as opposed to workers in the United States. IBM employees in Costa Rica earn on average less than workers in the United States, which incentivises IBM to hire more customer and technical support employees in Costa Rica. This concept relies on loose labor regulations which are inherently tied to neo-liberalism. IBM in Costa Rica will most likely continue to grow, and wage differences will remain a significant factor in this growth, representing a neo-liberalist framework.
Sources:
https://www.centralamericadata.com/en/article/home/IBM_to_hire_1200_people_in_Costa_Rica
https://www.datacenterdynamics.com/en/news/ibm-opens-technology-center-in-costa-rica/