Points of View
The Progressive BPO Train has Left the Station – Is IBM on It?
Since the divestment of its voice business to Concentrix (see link
), HfS has been focusing on IBM’s medium-term strategy with its BPO business lines, with the prime focus of enterprise clients shifting towards a two-pronged requirement of operational and transformational (what HfS terms as “Progressive”) service needs.
Clearly, IBM is evaluating areas of its business where it may be losing its competitive edge and/or profit margins are simply getting too squeezed, which explains its other recent sell-off of its x86 server business to Lenovo (see link). Two years into the job, it is clear that Ginni Rometty is focusing on high-margin cloud software, analytics and services, as opposed to commodity computing and storage. So if the cheap, low-margin business is a no-goer for the firm, where does this leave their BPO business, which has grown up on the transactional, highly scaled, low-wage employee model?
If there is one lesson we will eventually take from COVID-19, it’s the paranoia that government and business leaders now live with: the constant fear that a crisis like this could ever catch them cold again. This paranoia must spur...
Migrating to cloud applications can achieve speed, flexibility, and ease of management of IT environments. However, it can also be a mammoth undertaking technically and organizationally. A merger, acquisition, divestiture, or end of life of a legacy system presents an...
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