IBM Global Services unveiled a reorganization strategy today in a bid to squeeze more revenue from the lucrative services market (see HP to Lay Off 10 Percent).
With Global Services supremo John Joyce moving over to private equity firm Silver Lake Partners, IBM is shuffling its management pack. The division, which is seen as something of a goldmine within the IBM empire, will now be run by two IBM execs -- Ginni Rometty and Mike Daniels.
Rometty, the former managing partner at IBM Consulting Services, becomes vice president of enterprise business services within Global Services. Daniels, the one-time head of sales in the Americas, becomes Global Services vice president of information technology services. A third IBM exec, Bob Moffat, has been appointed vice president of integrated operations, supporting Rometty and Daniels in their new roles.
IBM spokesman Ed Barbini told NDCF that the two new chiefs are responsible for driving specific parts of Global Services. Rometty, for example, will be focused on what Barbini describes as business value services, such as consulting and application management. Daniels, however, will be responsible for IT services, which covers outsourcing and hosting.
The reorganization was driven by customer spending patterns, according to the IBM spokesman. Thats how customers buy now. Some want IT services, but some want business transformation, says Barbini.