IBM says outsourcing faces shake-up as clients build own tech

Technology giant International Business Machines Corp. said that many of its clients want to build their own IT capabilities instead of outsourcing the task to IBM or others, The Economic Times reported.  

The trend comes at a time when new technologies are beginning to disrupt business models, prompting companies to gain greater control over IT operations that were previously seen as non-core. Welcoming the shift, IBM said the trend represented a new opportunity for the company. 

“In 2018, what we are finding is more and more companies want to find their own capabilities. In some cases, they might want to use their skills with our technology to build their capabilities themselves,” Joseph Bellisimo, general manager, cognitive process transformation, global business services, IBM, told The Economic Times (ET).

“We think that is a great opportunity for all of us,” he added.

Last month, when ET had reported that IBM had appointed Samiron Ghoshal as its head for global business services in India, he said that the ability to provide end-to-end solutions matters as pure consulting services is less useful in the digital context because the technologies are rapidly changing. 

Then, in the first week of this month, IBM’s marketing chief Michelle Peluso said that the rise of emerging technologies such as artificial intelligence and blockchain will soon disrupt marketing and tech services.

In March, Jitan S Chandanani told TechCircle that IBM is working with banks, fast-moving consumer goods firms as well as small and medium enterprises to deploy blockchain in India.