Leader of the pack: Doug Elix opens up

IBM Global Services chief Doug Elix spoke with VARBusiness on his last day before leaving to head IBM's sales and distribution division. He said maintaining a reasonable sales margin was important because it allowed a company to invest in furthering the client relationship. At the same time, IBM's success is predicated on the success of its customers, and IBM Global Services' outsourcing business is growing strongly with that strategy. Elix said the consulting side of the business was hit hard by the economic downturn, but that IBM is ready for the new consulting market, which requires hands-on work, not just advice and reports. Much of the advice-type consulting done by IBM Global Services is free upfront, and points the way to actual transformation opportunities.

"The traditional consulting business has changed dramatically and probably changed forever. The idea of advice-based consulting has given way to accountability-based consulting," Elix said. "That's fine by us. We like to do the transformations work...and we like to get involved in the technology projects that support it." Businesses are readying for revenue growth, but executives believe their organisations need to be become optimised and more responsive. This is supported by recent IBM surveys and promises more technology services deals for IBM in the future, he said. IBM's on demand strategy provides a clear path for companies to transform their operations. Elix said business process management is the largest opportunity for customers to quickly transform their businesses.

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