The Race Is On
EDS's success prompted many competitors. In the early 1990s, IBM—at the time known primarily for mainframes and PCs—was struggling after years of lackluster earnings and strategic uncertainty. In 1993, the company's new CEO, Louis Gerstner, Jr., earmarked outsourcing and professional services as keys to IBM's financial turnaround. This division of the company, called IBM Global Services, had a distinct advantage over EDS. With IBM's portfolio of hardware and software products, IBM Global Services could build and operate single-source integrated solutions. By 1997, IBM Global Services had overtaken EDS as the IT services leader in terms of total revenue and organization size.
Today, IBM Global Services accounts for nearly half of ...
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