IBM initially started as business machine computing, later on shifted its business activities engaging in consulting business services on the global arena. This has been a long-standing strategy based on the un-IBM suggestion that effectively distinguished IBM from the low-priced suppliers of technology (Dignan, 2011). IBM continued to push aim at attaining high-end consulting services for business as well as outsourcing services that were part of the objectives as identified at the CEO’s and CMO’s. Towards the end of 2004, IBM’s Global service distribution earned a 48% of the revenue higher compared to 32% that was gained from hardware and 16% from the software. This was a result of hard work that involved total commitment and construction of closely controlled management systems as well as financial schemes. This was further reported to have impacted the global business arena through educating employees on all aspects that regard consultation of IT to the Web services. IBM Consulting Group is equipped with 1500 consultants across the globe. The employees are responsible for the increased IBM service growth by ensuring timely provision of management as well consultation services to information and technology organizations and firms in approximately 30 countries (Ante, 2011).
IBM made use of the company’s financial power to finance the costly drive into outsourcing. More importantly, the success of IBM worldwide services was as a result of the clear understanding of their customers and ensuring that they meet the client’s needs and desires. The company realized that technology and the business were integrated to form something new but a bit demanding for every type of organization (Ante, 2011). In regard to this IBM’s experience in both sectors is deep enough to assists their customers bring technology and business together in an effective manner. The kind of business IT services that IBM offers include the following business improvement services, strategic outsourcing, networking, and security as well as wireless services among others (University of Minnesota, 2004).
In 1990, IBM launched services meant for business recoveries which allowed an organization to continue operating even in the occurrence of a disaster.
In 1991, the corporate management of IBM came up with a global strategy that will help make it a world-class service providing company (Ante, 2011). During the same year it reorganized its service system to form the ISSC which provided the customer with a wide range of outsourcing services. According to (Dignan, 2011), there are three stages that show the evolution of this company’s services. The first one was the 1993 company’s decision of not breaking the company which became the reason for business replica for IBM. Here the company’s Global services became the central point help in integrating hardware and software as well as services. The next strategy developed the customer’s phenomenon and predated the outburst use of internet for commercial purposes.
IBM combined with many internal networks found in one organization to come up with IBM Global Network. The third strategy was meant for the company came up with key investment as well as disinvestment decisions to move its skills balance to attain increased revenue growth. This move assisted the clients in all aspects of the continuing operations of the business. In addition, IBM opted to act as an integrator by establishing the company’s future by building it around networks as well as acquiring enough resources to place the company in a better position worldwide where service provision is proving to be essential for both growth and success (Charles and Jones, 2011). Mid the past decade, IBM came up with a united company to help in developing and delivering services. IBM Global Services was developed to offer clients with global reach as well as more reliable levels of service. Due to this the Global service restructured its contributions by reducing from 2500 contributions globally to approximately 100 solution areas that seemed reliable internationally. As a result of the change experienced globally that ranged from customer change, the market place as well as the competitors change, hence pressuring IBM Global services to change as well.