Re: So what does IBM DO then?
They aren't outsourcing their staff, it's offshoring. They employ people in India etc to do the work rather than paying three times the price for people in mature markets. That way "in theory" companies can outsource their IT to IBM for cheaper than doing it themselves. I wouldn't call a company with hundreds of thousands of employees a shell company. They also sell software.
BTW I'm not saying it's a good/fair business model but just letting you know the facts. IBM has plenty of problems but being a shell company is not one of them