I read somewhere that Kyndryl is doing really bad. Is that true?
3 replies (most recent on top)
Truth be told, the other IT service companies are not much better off.
Kyndryl's business is managed services...what used to be called "strategic outsourcing" back in the IBM days. In the good 'ole days, the services industry was in its infancy, and there was nowhere to go but up. Clients were fat with cash, and they didn't want to share that cash with IT staff that they thought were overpaid and underworked. So they outsourced all their operations in megadeals to IBM, Accenture and companies like that. These were all-encompassing deals...helpdesk, telephone support, system, network and application administration, deskside support, PC acquisition and installs...stuff like that.
All this stuff still goes on today, but the world has changed and businesses are much more mature. What used to be widely distributed in IT (desktop computing) has now centralized again (websites and servers). The technical knowledge of how things work were once the domain of a relative few...nowadays you can bring in people off the street who know how to manage Windows and Linux environments at the very least. What was once the domain of Western nations eventually went to India, Brazil and Eastern Europe, among other places. You can find staff in those countries who can arguably do just as good a job as anyone in the Western world.
Businesses know all this, and so do the consultants that now assist them in signing IT deals. There once was a time when the CIO could sign a big-dollar deal all by themselves, with the blessing of the BOD for "getting all that excessive cost" out of their hands. Nowadays, it is expected that the consultants give their blessing to any deal that is signed, with all of the ego-st-----g and political wrangling that comes with it. The CIO might want to go with Kyndryl, or for that matter a US, Canadian, UK or Western European firm, but if the consultants are recommending something else and the BOD listens to the consultants, then guess what will happen? Yeah, that's how it works.
Add to that the lousy global economic climate, and what's happening to Kyndryl is not only not surprising, but inevitable. These are not the best of times.
Started as a Kyndryl Business Development Executive not long ago and had high hopes. Left after just a few months. No one on the team had any pipeline and they all left too. Existing business will eventually fizzle away as contracts expire. Executives getting rich while they can. Sad organization.
In my opinion yes. That opinion is based on a company that is just flat out losing money. A profitable company starts with everything is paid nothing owed. This company is far from that point. If you can read past all of the corporate spin and techno jargon. It is not profitable at this time and date. Will it always mean Kyndryl will never be profitable. Obviously not, but that road from debt to profit is a hard road traveled. When this company decides to make the necessary tough decisions that is required of management and employee. This company will ultimately stumble.