Now it's more like "nobody with any skill is left at IBM, because they all got made redundant".
Not so much that - there are still good technical people working at IBM, and as is always the case with big projects, IBM will fill technical roles with contractors (because there's aren't enough good technical people left at IBM these days to be able to staff more than 1 or 2 big projects at the same time).
The real problem with these big failed projects is always that the Sales and Solutioning team are NOT technical, and have no idea how to actually deliver on the promises they make to the client. Yes, they're all clued up on the industry buzzwords and terminology, but they don't have the first clue about how to actually deliver it, how complex it is, what skills they would need and how scarce they are, or how long it would take. They invariably under-cost the project to win the deal and don't understand that some of the stuff they promised the customer as part of the solution involves a huge piece of work that they haven't factored-in the time, skills or costs for, and it might not even be technically possible.
I worked on a project once where the Sales and Solution team had promised the customer we'd implement a certain capability using a particular software product, but that software product physically could not do what they'd told the customer it could. Every time I said "But it can't do that", the customer was very quick to chirp up "but you [the royal You] told us it would", and the IBM Sales team kept trying to tell me to find some way of making it work because they already told the customer it would! The laws of physics finally won out over the fairytales and the customer accepted that the s/w concerned couldn't do what they'd been promised. It wasn't pretty, but thankfully the customer accepted that maybe the Sales team didn't know what they were talking about and it was a relatively small 'stepping-stone' part of the overall project anyway which would be superseded by a better capability (that DID work!) the time we got to the end.