IBM Global Services
|Division of IBM|
|Industry||IT services, management consulting|
|Founded||June 16, 1991|
|Headquarters||Armonk, New York, United States
Over 300 offices in 170 countries
|Mark Foster, Senior Vice President, GBS; Martin Jetter, Senior Vice President, GTS|
|Services||IT, management consulting and outsourcing services|
|Revenue||US$ 58.8 billion (2012)|
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 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.
The beginning of IBM’s involvement in IT services can be traced back at least to 1989 when 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. This initiative was led by Robert M. Howe, IBM Vice-President and General Manager of IBM Consulting Group. The group was rebranded to IBM Business Innovation Services in 2001, 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, 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.
IBM Global Business Services is organized into three growth platforms which contain seven service lines:
- Digital Strategy & Interactive: Digital Strategy, iX
- Cognitive Process Transformation: Cognitive Business Decision Support, Cognitive Process Re-Engineering, Cognitive Process Services
- Cloud Application Innovation: ADM Innovation, Cloud Application Migration Services, Next Gen EA
IBM Global Technology Services
IBM Global Technology Services (GTS) primarily reflects infrastructure services. It includes outsourcing services, business continuity and resilience, Integrated Technology Services, and Maintenance. Revenues from the Global Technology Services segment in 2012 totaled $40.2 billion, a decrease of 2 percent compared with 2011.
GTS is the leading e-business on demand and hosting services provider, according to IDC, Forrester Research, Gartner/Dataquest and Meta Group; the leader in providing high-availability services, networking services and storage services, according to Gartner Group and IDC; the leader in the emerging wireless services market, according to IDC.
- "IBM Reports 2014 Fourth-Quarter and Full Year Results". Retrieved 2017-04-25.
- "IBM Archives: History of IBM, 1992". IBM.
- 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. Retrieved 1 October 2012.
- Rothenberg, Matthew. "IBM Business Innovation Services". Baseline Magazine. Retrieved 1 October 2012.