The business of business process outsourcing

Summary:Can Big Blue succeed in BPO? The latest edition of KnowledgeWharton, published by the University of Penn's Wharton School, reports that IBM continues to shift away from platforms to services, with nearly half of its $89 billion revenue from last year coming from services.

Can Big Blue succeed in BPO? The latest edition of KnowledgeWharton, published by the University of Penn's Wharton School, reports that IBM continues to shift away from platforms to services, with nearly half of its $89 billion revenue from last year coming from services. The company got into BPO consulting in a big way with the $3.9 billion acquisition of PricewaterhouseCoopers in late 2002. Earlier this year IBM purchased Daksh, an Indian BPO provider with 6,000 employees. IBM has scored some good deals, but Wharton researchers warn that yanking a process out of a firm and delivering it back as a service is by no means a commodity business. "IBM will have to find ways of automating the processes and migrating at least some parts of the process execution to off-shore locations to remain competitive in these segments."







Topics: Outsourcing

About

Joe McKendrick is an author and independent analyst who tracks the impact of information technology on management and markets. Joe is co-author, along with 16 leading industry leaders and thinkers, of the SOA Manifesto, which outlines the values and guiding principles of service orientation. He speaks frequently on cloud, SOA, data, and... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.