Wednesday, November 28, 2012

International Business Machines Corp. (NYSE:IBM) Outsources UK Desktop Support Operation To Phoenix

The Channel revealed that International Business Machines Corp. (NYSE:IBM) is the Global Services Provider that is responsible for outsourcing desktop support to Phoenix IT Group.

Last day Phoenix has confirmed that it has entered into a 5-year agreement that is worth £ 40 m with an anonymous GSP to deliver desk-side services for the employees and the customers of the company.

Nearly 180 IBM employees are required to be shifted to the Northampton-based company under TUPE, Transfer of Undertakings regulation next month.

Director of delivery operations at IBM Global Technology Solutions, Mark Thomas has said in a note that IBM has established an Employee Consultation Committee to talk on offers to strike a deal with a third party company to deliver desk side support in the United Kingdom.

Thomas has also said he can confirm that the vendor with whom IBM is presently dealing are talking on prospects for provision of a services agreement is Phoenix. IBM mentions on its preview material that it delivers desktop support to small or multinational companies.

However, channel sources feel Big Blue was under pressure to make money from the medium sized accounts it is transferring and inquired if Phoenix will stand any better chance.

Research director at TechMarketView, Kate Hanaghan has argued back saying that IBM’s move made sense and was nothing new. She felt that supervising a field engineering services comes with many challenges of running something like a cross between a logistics and a consultancy operation.

In quintessence, there are instances when service providers have to bear the expenses of an engineer waiting to be deployed, apart from the challenges of coordinating engineers and components around the county or even nation.

Hanaghan also said that some of the IT outsourcers and SIs do not wish to operate in the world. There is logic to it. Someone like Phoenix, with its committed approach, developed over several years, is well-placed to undertake this.

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