IBM’s Acquisition of PwC Signals Move into BPO Space, IDC Says

FRAMINGHAM, MA – AUGUST 1, 2002 – IBM's acquisition of PwC consulting signals its intention to enter the business process outsourcing (BPO) space with a metaphorical shot across the bow of would-be BPO competitors, according to analysis from IDC.


As profit margins in IT outsourcing narrow, services vendors are moving to invest in business process outsourcing. While IBM has not been clear to date about its intention to compete in the BPO space, IDC believes that with this acquisition IBM has the potential to establish a credible capability in business process and business process outsourcing.

"By combining the industry knowledge and business process expertise of PwC's consultants with its IT infrastructure and process expertise, IBM will have a significant base from which to build its BPO offerings," said Traci Gere, Group Vice President, U.S. Services Research. "Clearly IBM is serious about being a one-stop shop for IT and business process outsourcing and will have the resources to provide these services globally."

IBM has begun its foray into the BPO space, but still faces the challenge of translating PwC consulting expertise into full-blown BPO offerings and positioning these offerings in the marketplace.

A new IDCFlash provides background and detailed analysis of IBM's acquisition of PwC. Registered users can download a complimentary copy of IBM Buys Monday: In Pursuit of Business Process Expertise (IDC #27766) at

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.


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