IBM Global Services

IBM Services is the professional services arm of IBM, made up of business, technology and industry experts who apply advanced technology and help clients design, build and run businesses. It includes two divisions: IBM Global Business Services (GBS) and IBM Global Technology Services (GTS).

IBM Services
TypeDivision of IBM
IndustryIT services, management consulting
FoundedJune 16, 1991 (1991-06-16)
Headquarters
Armonk, New York, United States
Over 300 offices in 170 countries
Key people
Mark Foster, Senior Vice President, GBS; Juan Zufiría, Senior Vice President, GTS
ServicesIT, management consulting and outsourcing services
Revenue
ParentIBM (1991–present)
Websitewww-935.ibm.com/services/us/gbs/consulting/

IBM Global Business Services

IBM Global Business Services (GBS) is the professional services arm of Global Services, including management and strategy consulting, systems integration, and application management services. Revenues from the Global Business Services were $13.5 billion in 2014.[1]

History

IBM's early involvement in IT services can be traced back to the mid-seventies and its Data Processing Support Services (DPSS) division. At the time, the company was under regulatory pressure to unbundle its support services from the sale of hardware. Additionally, with the launch of its early teleprocessing and database products, such as CICS and IMS, many customers could only acquire the expertise needed to build their applications through hiring consulting services directly from IBM itself.

Later, in 1989, Eastman Kodak Company and IBM completed an agreement by which IBM designed, built and managed a new state-of-the-art data center for Kodak in Rochester, New York under the brand name ISSC, Integrated Systems Solution Corporation.

Also in 1989, IBM introduced Business Recovery Services, an offering that enables a business to continue operations in the event of an unplanned outage or disaster.

In 1992, the company formed IBM Consulting Group, as a new management consulting organization with service lines in Business Transformation and IT Strategy Consulting.[2] This initiative was led by Robert M. Howe, IBM vice-president and general manager of IBM Consulting Group.[3] The group was rebranded to IBM Business Innovation Services in 2001,[4] and then IBM Business Consulting Services. As the management consulting became more entangled with more technology delivery, the integrated organization became known as IBM Global Business Services.

In 2002, IBM Global Services acquired the management consulting and technology services arm of PricewaterhouseCoopers,[5] around the same time some of the other Big Four accounting firms were selling off their consulting arms (this was from intense pressure to avoid conflicts of interest in light of the Sarbanes-Oxley Act). PwC's consultancy business was sold to IBM for approximately US$3.9 billion in cash and stock. This nearly doubled the number of consultants within IBM Global Services, adding 30,000 consultants in 52 countries.

In 2016, IBM announced its planned acquisition of Promontory Financial Group in September 2016 and completed the transaction in November 2016.

Organizational structure

IBM Global Business Services is organized into three growth platforms which contain seven service lines:

  • Digital Strategy & Interactive: Digital Strategy, IBM iX
  • Cloud Application Innovation: ADM Innovation, Cloud Application Migration Services, Next Gen EA
  • Cognitive Process Transformation: Cognitive Business Decision Support, Cognitive Process Re-Engineering, Cognitive Process Services

Acquisitions

IBM Global Technology Services

IBM Global Technology Services (GTS) provides information technology (IT) services for clients around the world. GTS professionals design, build, run and maintain critical infrastructure and systems across clients’ IT environments. In recent years, GTS has expanded its capabilities in hybrid cloud and is applying automation and Watson in its services delivery, especially through the IBM Services Platform with Watson launched in July 2017.[6] On October 8, 2020 IBM announced it was spinning off the Managed Infrastructure Services unit of its GTS division into a new public company, an action expected to be completed by the end of 2021.[7] [8] [9] [10] [11] [12] [13] [14]

Organizational structure

IBM Global Technology Services is organized into two core capabilities:

  • Infrastructure Services delivers a portfolio of cloud, project-based, outsourcing and other managed services. The portfolio includes hybrid cloud services and solutions to assist clients in building and running enterprise IT environments that utilize public and private clouds and traditional IT, built around a key set of solutions addressing systems, mobility, resiliency, network, and security.
  • Technology Support Services delivers support services to maintain and improve the availability of clients’ IT infrastructures, such as AI and analytics. These offerings include maintenance for IBM products and other technology platforms, as well as software and solution support.

References
  1. "IBM Reports 2014 Fourth-Quarter and Full Year Results". 2015-01-20. Retrieved 2017-04-25.
  2. "IBM Archives: History of IBM, 1992". IBM. 2003-01-23.
  3. Howe, Robert M (1983). "Message from the IBM Vice-President and General Manager, IBM Consulting Group". IBM Systems Journal. 32 (1): 1. doi:10.1147/sj.321.0000.
  4. Rothenberg, Matthew. "IBM Business Innovation Services". Baseline Magazine. Retrieved 1 October 2012.
  5. Shankland, Stephen. "IBM grabs consulting giant for $3.5 billion". CNET. Retrieved 2020-01-29.
  6. "IBM announces a new services platform". www-03.ibm.com. 2017-07-12. Retrieved 2018-04-10.
  7. "TECH IBM shares soar on plans to spin off its IT infrastructure unit and focus on the cloud business". www.cnbc.com. 2020-10-08. Retrieved 2020-10-08.
  8. "IBM To Accelerate Hybrid Cloud Growth Strategy And Execute Spin-Off Of Market-Leading Managed Infrastructure Services Unit". ibm.com. IBM Corporation. Retrieved 10 October 2020.
  9. Rosenbush, Steven. "IBM's Red Hat Deal Laid Foundation for Split of Company Into Two Pieces". wsj.com. The Wall Street Journal. Retrieved 10 October 2020.
  10. Asa Fitch and Dave Sebastian. "IBM to Spin Off Services Unit to Accelerate Cloud-Computing Pivot". wsj.com. The Wall Street Journal. Retrieved 10 October 2020.
  11. Bendor-Samuel, Peter. "IBM Splits Into Two Companies". forbes.com. Forbes. Retrieved 10 October 2020.
  12. Moorhead, Patrick. "IBM Spinning Off Infrastructure Managed Services Group To Focus On Cloud Is A Good Move". forbes.com. Forbes. Retrieved 10 October 2020.
  13. Vengattil, Munsif. "IBM to break up 109-year old company to focus on cloud growth". www.reuters.com. Reuters. Retrieved 10 October 2020.
  14. Goodwin, Jazmin. "IBM spins off a quarter of the company to focus on the cloud". cnn.com. CNN. Retrieved 10 October 2020.



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