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Management discussion
International Business Machines Corporation and Subsidiary Companies

Employees and related workforce

  Yr.-to-Yr. Change
For the year ended
December 31:
2008 2007 2006 2008-07 2007-06
IBM/wholly owned subsidiaries 398,455 386,558 355,766 3.1% 8.7%
Less-than-wholly owned subsidiaries 11,642 11,769 10,720 (1.1) 9.8
Complementary 27,983 28,642 28,063 (2.3) 2.1

As a globally integrated enterprise, the company operates in over 170 countries and is continuing to refocus its business on the higher value segments of enterprise computing. The company also continues to rebalance its workforce globally to improve its global reach and competitiveness and to reflect the changing geographic mix of its business.

In 2008, total employees at IBM and its wholly owned subsidiaries increased 11,897 compared with 2007. The U.S. remained the largest country, with 115,000 employees, while resources increased in Asia Pacific and Latin America and were essentially flat in Europe.

The company continues to add resources aggressively in emerging markets, particularly in the BRIC countries — Brazil, Russia, India and China — where employment totals approximately 113,000.

The complementary workforce is an approximation of equivalent full-time employees hired under temporary, part-time and limited-term employment arrangements to meet specific business needs in a flexible and cost-effective manner.

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