Reply to post: The IT service industry is changing

IBM could have made almost all the voluntary redundancies it needed

Anonymous Coward
Anonymous Coward

The IT service industry is changing

The days of companies outsourcing all of their IT operations to a single company are over. Almost all new contracts are broken into pieces, and a company will submit RFPs for desktop services, helpdesk services, datacenter services, etc. Some will even break out individual towers so storage will be offered separately from Unix/Linux.

This shift has helped the mid market players who previously couldn't compete with the big dogs like IBM, HPE, and so forth for the really huge contracts. Now that they've been broken up into bite sized pieces, they can and do.

That's what is causing all the pain with the mega IT service companies you refer to, and why you see IBM shedding employees as fast as they can, HPE merging with CSC and so on.

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