Simple question, will Kyndryl thrive and grow?
7 replies (most recent on top)
No !! I don't think it will, no one is kicking in their front door to hand them work. This is a very unprofitable company. All the talk, investors spend on this companies defense. It is just spin, almost profitable is akin to still losing our shirts. The best this company can hope for is just stagnate for as long as possible with out losing ground. This is the more realistic scenario, it buys them time to find investors, or buyers. Most savvy buyers just wait for the fire sale to start, and in Kyndryl's case the fire is the amount of cash they are burning through.
I think we are quietly circling the drain.
A friend of mine is Kyndryl Business Development Executive. Said there is and had been $0 new business pipeline!
I don't think Kyndryl will do much more than consistently break even. Leadership of the company is far too conservative to try new ideas, so I expect stagnation once unprofitable contracts are dropped. Of course, it is also possible that consistent break evens are not possible in changing economic environments, in which case Kyndryl will operate at a loss until it sells. I expect Kyndryl will probably be sold in the coming years, and possibly merged into a larger nimbler company such as Infosys, Tata, or Nortel.
There's always going to be layoffs don't kid yourself. The comments around few openings means no growth and stagnation is a warning sign.
A simple question with a complicated and nuanced answer: "It depends."
Kyndryl used by IBM's GTS (managed infrastructure) business...the system, database, application and network administrators. Those people who sit in the background "running" (but not necessarily DEVELOPING) customer IT infrastructure. Back in the day, customers with their own data centers would hire IBM to come in and run all of their stuff on long-term contracts. The value proposition was that IBM had the skills and experience to do the job more efficiently than any customer could do on their own. Multi-year service contracts were written up with that basic assumption in mind, and IBM GTS would manage their personnel numbers based on contract performance (is IBM making money), customer sat, and things like that.
IBM spun off GTS into Kyndryl because the business was dwindling. Customers are much, much, much more IT savvy now than in the past, so they know what they want and are perfectly capable of running their own stuff if they want to. There are many IT service companies in the sector, not to mention offshoring the work to India or Brazil or some place like that. A lot of companies reduced the sizes of their internal data centers (and the need for someone like Kyndryl) and moved the workload to cloud computing. Kyndryl and IBM push "hybrid cloud" (integrated management of both cloud and internal resources), but whether that needs as many employees as before remains to be seen.
The best way to answer your question is: "Kyndryl will survive." As to the thrive and grow part, it really depends on Kyndryl and whether or not they can get new business. There will always be a base need for infrastructure administrators, and Kyndryl will no doubt retain at least some of that business (they won't lose it all to competitors). But can they learn new tricks? That's up to them.
I think so although this year will be hard for all companies due to upcoming recession I don't think Kyndryl will have any more layoffs as officially they went down to their target headcount. I don't know what with people already on bench and how are they calculated. There are some new deals, all will depend on already aquired customers if they stay or not, but this is in hands of upper management and their negotiations skills. I don't see though many new openings on Kyndyl career page what suggests low attrition rate.