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It's all contractors being sub contracted to other companies. If they laid off 10% of their workers overnight it wouldn't matter because it's the normal cycle o
by user5994461 8y ago
It's all contractors being sub contracted to other companies. If they laid off 10% of their workers overnight it wouldn't matter because it's the normal cycle of contracting.
There can be no growth because contractors don't scale. They bring a fix percentage of their day rate.
There could be some products with great people lost in a corner of IBM. However, they will remain a negligible fraction of the company and they won't have the power to turn it around.
If AWS/Microsoft makes a new product or service, they can roll out instantly everywhere and capture clients. If IBM does something new, they couldn't begin to sell it, they'd sell you a contractor.
- cgh 8y ago> There can be no growth because contractors don't scale. They bring a fix percentage of their day rate. IBM's revenue growth over at least the last three quarters is due to its mainframe business and the launch of the z14.
- jacquesm 8y ago> There can be no growth because contractors don't scale. Except of course that when you employ 300K of them it does scale. The mistake many software people make is that only software scales, but IBM (and others) has successfully built a scalable model around consulting.
- user5994461 8y agoIt scales strictly linearly with the number of sub contractors.