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Consulting Client Insights: IBM Transformation

IBM's consulting revenues were hit hard in its most recent fiscal quarter. While profitability has increased, those increases have been driven largely by expense reductions as a result of changes in IBM's global delivery model; and the company has no plan to pass those savings along to clients in reduced fees. This Research Note explores the impact of IBM's strategic transformation and shifts in consulting resources on the company's ability to deliver on its promise to provide higher quality services to clients, while simultaneously providing higher margins to investors. Our Note offers perspective on IBM's Q2-2009 financial results for services, along with recommendations on what clients should do to assess the ongoing transformation at IBM and potential impacts on strategic sourcing initiatives for consulting, IT services, and outsourcing. . . . (to read the remainder of this article, please log in below.)
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