Outgoing IBM Global Services group executive Doug Elix says growing the $40-billion organisation is a challenge that involves partnering with smaller integrators, a careful re-investment in the customer, and the creation of entirely new markets. Elix is candid about IBM Global Services' relationship with business partners, saying that there will inevitably be some areas of conflict, but that clear frameworks for investment and joint effort minimise those differences. He says IBM Global Services is not partial to IBM hardware or software, but accurately reflects the market in terms of what it uses in its outsourcing and integration deals. Focusing solely on high margins can ruin the long-term prospects for a deal, something that IBM is not willing to do, says Elix. IBM's stand is that productivity gains should lower the price, not increase the margin. Outsourcing will continue to be one of IBM Global Services' strongest areas. "It's still growing, and I fully expect that the opportunity is there for it to continue to grow," he says. Business consulting has faced more difficulty during the recent downturn, Elix admits, but he is confident enterprises are ready to re-engineer themselves for growth. Business process management is one tool executives can use to optimise their businesses, he says. Finally, growing a business as large as IBM Global Services poses management difficulties, and Elix says CEO Sam Palmisano often intervenes to provide insight. "He sits there and says, 'Why do you think that way? There are businesses you can create,'" says Elix. Copyright 2004 INFORMATION, INC. |
