IBM loses major outsourcing contract...
Category IBM/Lotus
Fortune: Is IBM's Services Strategy In Jeopardy?
New York Times: IBM Shrugs Off Loss Of A Service Contract It Once Flaunted
So... J. P. Morgan Chase has decided to cancel its outsourcing contract less than two years into a seven year engagement. While all the articles I've seen so far on this don't show any rancor or accusations on either side, you have to wonder about why a $5 billion agreement fell apart. It sounds like the merger of J. P. Morgan and Chase caused them to re-evaluate the need to have an external entity manage their resources. Plausible...
I don't see where this spells the end of IBM's services strategy, but I hope it's the beginning of a trend to really examine outsourcing and what it costs to give up that control...
Fortune: Is IBM's Services Strategy In Jeopardy?
New York Times: IBM Shrugs Off Loss Of A Service Contract It Once Flaunted
So... J. P. Morgan Chase has decided to cancel its outsourcing contract less than two years into a seven year engagement. While all the articles I've seen so far on this don't show any rancor or accusations on either side, you have to wonder about why a $5 billion agreement fell apart. It sounds like the merger of J. P. Morgan and Chase caused them to re-evaluate the need to have an external entity manage their resources. Plausible...
I don't see where this spells the end of IBM's services strategy, but I hope it's the beginning of a trend to really examine outsourcing and what it costs to give up that control...
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Posted by Ed Brill At 14:50:03 On 19/09/2004 | - Website - |