Is IBM done with the RA’s Fiorella this yesr
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BP = Bull Pucky
"What is a BP?"
BP stands for Business Partner. IBM is using BPs under IBM contract (high price/revenue) but with a lot lower cost (low price paid to the BP) to increase the margins. Internal employees in services (especially Lab Services) can't compete because the cost of a Lab Services consultant is way off the charts compared to what is paid to the BP. Not that the Lab Services consultants are getting paid a lot, but because there are so many managers and layers of management... and these folks want to get paid a lot for showing no results!
What is a "BP"?
Expert Labs has become a joke, they can’t support anything including advanced features because they don’t get advanced training. Yet they want to charge $350 an hour for their cr---y services.
I would say Hybrid IBM may exit lab services, BUT Kyndryl will most likely pick it up. Someone has to support the more advanced features within the HW and SW. That’s Kyndryl
Yes, a lot of dollars are left for restructuring (layoffs) in 2021, not to mention another billion for 1Q 2022. So brace yourself, things will get ugly very fast.
Also keep in mind the latest IBM strategy for services which is push as much work as possible to BPs… what IBM wants is increased margins, so the quick way to do that is to use BPs on IBM contracts. What BPs are paid is a lot lower than what an IBMer costs. That makes you wonder why stupid customers don’t use BPs directly!!!
Lab Services folks you are next on the chopping block… by mid 2022, Lab Services or Expert Labs as it is called these days, will no longer exist.
Mate have you living in a cave? Majors reorg and cuts coming q3 guarateed.
Don’t expect Q2 performance to be good…
IBM already told the analysts at the end of 1st q of 2021 that they were going to take a 3 billion dollar charge, in 2021 and a 1 billion dollar charge in 2022. (AAS of the end of 1st q they had spent less than 200 million) In addition they told the street that 250 million accounted for in 2020 had carried over to 2021 due to their inability to close the 2020 restructuring plan in Europe. I expect you will see some major restructuring around the same time GTS is spun off. The old rule of thumb was 10k heads per billion (again it was dependent on the work experience of the folks in the firing line) With the current 30/90 plan now being executed vs the old 30/180 day plan that used to be offered, I would expect the 10k per billion to be a little light and we may stray into the 12-14k per billion.
It's IBM. RA can happen anytime. Plus lots of the things would depend on q2 performance.