https://www.theregister.com/2024/12/08/kyndryl_consulting_business/
2 replies (most recent on top)
This whole industry is down. Companies not hiring.
It’s the old joke How do you make a small fortune in IT? Start with a big one! Kyndryl is doing exactly what IBM did to them. Exiting accounts they should have never bid on as commodity labor was/is the defining decision point. You are not adding value, but rather just providing labor. As such Kyndryl will shrink, while attempting to move upscale (eg add value to their commodity labor). Will they succeed? Most likely yes where they invest in value added skills, BUT they are certainly going to shrink given current course and speed. I view Kyndryl very much like an IBM Lab services off shoot. Yes their skill set is needed, but their value added skill set is not growing near as fast as the commodity labor contracts are expiring. Where will Kyndryl settle out? Most likely in the 60% range of where they were spun off. So 19.5 billion x .6 = 11.7 billion plus 3% growth over 3 years in “new” value add = plus 1 billion for a total of 13 billion. The equates to approx 60k worth of employees with 5k being on shore in NA.