The spokesperson went onto to explain, “And like every business, IBM re-skills its workforce to meet emerging client requirements. GTS is substantially increasing its investment in professional development and technical training to focus on our itrategic Initiatives.” In other words, IBM has been moving to areas like cloud, security, artificial intelligence and analytics over the last several years and they need to move the GTS workforce to those areas too (which would suggest they are actually doing it).
Ray Wang, who is founder and principal analyst at Constellation Research says this a change the company has to make. “IBM is in the middle of a larger re-skilling exercise. The goal is to redeploy and retrain their staff for new business models,” he said. “GTS was set up for legacy support models and outsourcing models This is why there may be some truth in the rumor, but we do know that Bain is there,” he added.
The good news is that the reports don’t mention massive layoffs, although some layoffs are probably likely with a division this large. Still, if the initial report is correct, the focus appears to be on shifting employees to other positions, not eliminating them. Of course, time will tell how all of this plays out.
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