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IBM Consulting

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IBM Consulting
Company typeDivision of IBM
IndustryInformation technology consulting
Outsourcing
FoundedJune 16, 1991; 33 years ago (1991-06-16)
Headquarters
Armonk, New York, U.S.
Key people
Arvind Krishna, Mark Foster, Chairman
John Granger, Senior VP
Kelly Chambliss, SVP & COO
ParentIBM (1991–present)
Websiteibm.com/consulting

IBM Consulting, rebranded in 2021 from IBM Global Business Services, is the professional services and consulting arm of IBM.[1] It provides services to companies, global government organizations, non-profits and NGOs.

It has approximately 160,000 employees[2] globally, with capabilities spanning strategy and management consulting, experience design, technology and systems integration, and operations.

History

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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 acquire the expertise needed to build their applications only through hiring consulting services directly from IBM.

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.[3] This initiative was led by Robert M. Howe, IBM vice-president and general manager of IBM Consulting Group.[4] The group was rebranded to IBM Business Innovation Services in 2001,[5] 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 acquired the management consulting and technology services arm of PricewaterhouseCoopers,[6] around the same time some other Big Four accounting firms were selling off their consulting arms (this was in order 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.

In October 2021, IBM Global Business Services was renamed IBM Consulting after the spin-off of IBM's Global Technology Services division into Kyndryl Holdings.[7][8]

Organizational structure

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IBM Consulting has three main divisions:

  • Business Transformation Services
  • Cybersecurity Services
  • Hybrid Cloud Services

Acquisitions

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Over the years of its operating, IBM Consulting acquired numerous formerly independent consulting companies:

  • PricewaterhouseCoopers (PwC) Consulting, 2002 [9]
  • Bluewolf, 2016
  • Resource/Ammirati, 2016
  • Promontory Financial Group, 2016
  • TruQua, 2020[10]
  • 7Summits, 2021[11]
  • BoxBoat, 2021[12]
  • SXiQ, 2021[13]
  • Sentaca, 2022[14]
  • Neudesic, 2022[15]
  • Dialexa, 2022
  • Octo, 2022
  • Apptio, 2023

See also

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References

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  1. ^ "IBM Global Business Services rebrands as IBM Consulting". consulting.us. Retrieved 9 December 2021.
  2. ^ "IBM 2022 Annual Report" (PDF). IBM. 2023-03-09.
  3. ^ "IBM Archives: History of IBM, 1992". IBM. 2003-01-23. Archived from the original on December 7, 2004.
  4. ^ 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.
  5. ^ Rothenberg, Matthew. "IBM Business Innovation Services". Baseline Magazine. Retrieved 1 October 2012.
  6. ^ Shankland, Stephen. "IBM grabs consulting giant for $3.5 billion". CNET. Retrieved 2020-01-29.
  7. ^ Osman, Riaz. "IBM Global Business Services renamed IBM Consulting". Retrieved 8 December 2021.
  8. ^ Foster, Mark. "Meet IBM Consulting". ibm.com. IBM. Retrieved 8 December 2021.
  9. ^ "IBM to acquire PwC Consulting for $3.5 billion, 2002". ComputerWorld. 2002-07-30.
  10. ^ "IBM to Acquire SAP Consulting Partner TruQua, 2020". IBM. 2020-11-16.
  11. ^ "IBM Acquires 7Summits to Drive Digital Transformations for Salesforce Clients, 2021". IBM. 2021-01-11.
  12. ^ "IBM to Acquire Premier Hybrid Cloud Consulting Firm, 2021". IBM. 2021-07-08.
  13. ^ "IBM Acquires Hybrid Cloud Consulting Business in Australia, 2021". IBM. 2021-11-30.
  14. ^ "IBM Takes on the 5G Era with Acquisition of Sentaca, 2022". IBM. 2022-02-01.
  15. ^ "IBM Acquires Neudesic, Leading Microsoft Azure Consultancy, 2022". IBM. 2022-02-15.
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