IBM Services
From Ibmer
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[[Image:Income.jpg|frame|Services provide much of IBM's revenue, but a rather lower percentage of IBM's profits. (Source: S1)]] | [[Image:Income.jpg|frame|Services provide much of IBM's revenue, but a rather lower percentage of IBM's profits. (Source: S1)]] | ||
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| + | ==The flaws in the acquisition of PricewaterhouseCoopers Consulting== | ||
| + | :'' 'When IBM bought the consulting arm of PricewaterhouseCoopers in 2002, it seemed like the final piece of the jigsaw needed to complete the services strategy. The consultants' industrial expertise and their relationships at the top of all manner of industries would help IBM move upmarket and lead to the more lucrative work of solving complex business problems. Rapid growth seemingly beckoned. In fact, IBM's services business suffered at the lower end of the market, owing not least to unexpectedly strong competition from Indian IT firms, many of which first got started in the IT business thanks to the vacuum created when IBM quit the country.' <sup>S2</sup> | ||
==Sources:== | ==Sources:== | ||
*S1: [http://www.channelregister.co.uk/2007/05/11/layoffs_ibm_cringe/page2.html The Register (May 2007)] | *S1: [http://www.channelregister.co.uk/2007/05/11/layoffs_ibm_cringe/page2.html The Register (May 2007)] | ||
| + | *S2: [http://www.economist.com/opinion/displaystory.cfm?story_id=8956676 The Economist (April 2007)] | ||
Current revision as of 07:29, 20 May 2007
The declining profitability of Services
Services provide much of IBM's revenue, but a rather lower percentage of IBM's profits. (Source: S1)
The flaws in the acquisition of PricewaterhouseCoopers Consulting
- 'When IBM bought the consulting arm of PricewaterhouseCoopers in 2002, it seemed like the final piece of the jigsaw needed to complete the services strategy. The consultants' industrial expertise and their relationships at the top of all manner of industries would help IBM move upmarket and lead to the more lucrative work of solving complex business problems. Rapid growth seemingly beckoned. In fact, IBM's services business suffered at the lower end of the market, owing not least to unexpectedly strong competition from Indian IT firms, many of which first got started in the IT business thanks to the vacuum created when IBM quit the country.' S2
