Almost every post here mention no, or very limited new signings. Yet, latest earnings report(s) show constant YtY increase in signings. What’s the catch? Is there really increase in new business, or is it just smoke and mirrors?
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Kyndryl is on a Fast-Flat and Focussed run to into the abyss of oblivion
The old outsourcing business models that Kyndryl inherited from IBM are no longer valid in 2025. Companies who once outsourced their IT operations to IBM and other firms are now bringing very limited stuff back in-house, or are moving to cloud services. There's no reason to sign service contracts covering hundreds of outsourced staff when you can have relative handfuls of on-site employees provisioning stuff on AWS, Azure or Google Cloud at bargain-basement rates.
Kyndryl management recognized this reality, and so you see these Register and other articles talking about Kyndryl's Consulting Business vs Kyndryl's Managed Operations Business. Contracts are not being renewed in "Managed Operations", so the "Consulting" side is trying to grab whatever it can as customers move to the cloud. It can grab some migration business, but it won't be nearly enough to cover what was lost.
Kyndryl might survive as a company. But it will not look like it does now, and it will not be following the old IBM GTS business models...they don't work anymore.
Prolly not. You would hear about it: "GM Announces $1B Partnership with Kyndryl". Lol Like N E V E R.
I think with the current market, Kyndryl is not doing bad. I know this is a layoffs site but take into consideration that investors do not have that great expectations from Kyndryl compared to other companies that were in green numbers for long time.
Ok, I ahree for achieving EBIDTA, GP etc. But what abou increase in signing? Whether new logo or renewal, it does mean some new revenue.
Numbers were achieved in by aggressive cost cutting and RAs.
Customers are terminating contracts left right and center.
This is the reality:
https://www.theregister.com/2024/11/20/kyndryl_little_new_business/