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back to article IBM offloads customer services biz for half a BEELLION DOLLARS

IBM is planning to outsource its Business Process Outsourcing customer services after last night confirming plans to offload the unit to US tech distie and BPO player Synnex for $505m. Under the terms of the deal, Synnex will cough $430m in cash and $75m in stock to take on 45,000 soon-to-be-ex IBMers operating across a network …

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Silver badge

Well done IBM

Having offshored tens of thousands of mid-wage jobs from the US and Europe, and delivered shite service at high cost to customers from zero wage overseas call centres, you now announce that this is a commodity business you no longer want a piece of.

Will this achievement be appearing in your corporate social responsibility report?

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Re: Well done IBM

>>...delivered shite service <<

Do you think that it's that good?

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Holmes

So then...

Just what is it that IBM actually do?

I mean, I worked for them before the great TUPE and I have no idea.

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Re: So then...

"Just what is it that IBM actually do?"

They make and sell mainframe computers. And they invented and gave away the PC business, because it was boring with no competition.

Oh, and they are one of the very few outfits that has actually figured out how to make money consistently from selling hardware, software and services over the past 60 years. (Actually, one of the very very few such outfits that has even stayed in business).

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Two keys to understanding IBM

1. They should rename themselves IBMSS - International Business Machines, Software, and Services. Each

contributes about one third of revenues. Not sure about the profit contribution. Software tied to mainframes is the breadwinner of that division.

2. At heart, they really only want to sell to Fortune 500 companies and Governments, preferrably on a golf course or at an Executive Briefing close to a general aviation airport. Dealing with small business is a pain, best done by a legion of desperate VARs, and selling to end user customers is a royal PITA.

This explains why they sell off half billion dollar chunks of the company every decade or so [citation needed but not supplied].

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Bronze badge
Pint

moving on...

Sold because undoubtedly it no longer forms an integral part of current direction or intended path. Question here is were others invited to tender for the business or was this a covert 'under the blanket job' with a preferred Distributor/partner? Better still, wonder how customers will see this?

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Anonymous Coward

Ibm selling outsourcing/offshoring biz.

I was outsourced to IBM by my previous employer, I have to say I've been kept rather busy ever since....

Oh, hang on thats my boss calling me.....

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