The days of IBM being all things to everyone have been abandoned. Cloud go to market marketing strategy will allow IBM to reduce head count 50-60%. It will also allow approx 60% of the remaining heads to be offshore.
You can do the math, as to where IBM head count is heading in the USA and Europe. Bain will take what IBM doesn’t want, and right size it for efficiency and profit. IBM labs will provide Bain with the technological advantages and IP license to them
@1gmc that's a million dollar question - we all know that massive RA is coming, we just do not know when.
We are lucky that the economy is doing well, imagine what'll happen once the market turns a bit and capital spending dries out
Bain, please clean up all the middle mgmt bloat.
IBM has become the movie Office Space
Does anyone know when the next large round of headcount reductions will begin?
Bain takes all high cost low margin business. (sit will be a spin off / ip deal) IBM right sizes to “as a service”, and niche pieces. They remain a major player in research / patents. Split is approx 55 billion IBM in revenue, 25 billion in revenue for Bain.
Bain does the heavy lifting of reorg’ing the low margin business. IBM guarantees the Bain portion of the business the GF treatment (Eg Help via the labs with futures and a guarantee of certain amounts of business over 10 years). Again just rumor, but the stars seem to be aligning