UPDATED 20:18 EDT / JANUARY 15 2018

INFRA

Report: IBM to combine services units into one business called ‘IBM Services’

IBM Corp. is believed to be planning a rebranding of its Global Technology Services and Global Business Services units, merging them into a single unit to be called “IBM Services,” according to reports.

The two businesses are a part of IBM Global Services, which Wikipedia reckons is the world’s largest business and technology services provider, with more than 190,000 employees scattered across the world.

U.K.-based technology website The Register cited leaked internal communications from IBM as saying that “our clients understand their success depends largely on how well they capitalize on exponential intelligence fueled by pervasive technologies.”

As such, IBM clients are looking for a “trusted partner who can provide strategy, business and technology consulting and innovation as well as matchless execution.” That’s evidently what the rebranding is all about. According to Big Blue, by integrating the capabilities of its GBS and GTS units under the IBM Services banner it will be better positioned to “increase awareness” of the “powerful talent” the two entities bring to the table.

IBM’s letter to employees goes on to proclaim that the company possesses “the most skilled, innovative, results-driven IT [information technology] and business consulting professionals in the world.”

Such a claim may rile employees of IBM’s GTS division, which was revealed just last week to be planning a massive reassignment of 30,000 of its workforce, with the potential for 10,000 of those staffers to lose their jobs eventually. IBM staff were reportedly upset that the company concocted these plans after consulting with the advisory firm Bain & Co., despite its claims that it’s very good at doing these kinds of things itself.

“IBM is trying to leverage synergies for client delivery,” Holger Mueller, vice president and principal analyst at Constellation Research Inc., said of the company’s plans. “As with every consolidation, often specialties get under emphasized or even lost over time. We will have to see if this change will improve IBM’s market position or not in the near future.”

The Register said IBM hasn’t indicated any plans for a reorganization to accompany the rebranding.

Image: Morgaine/Flickr

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