Friday, April 15, 2005

IBM wobbles - but consulting still going strong

It's been a shaky 24 hours for IBM as its latest quarterly results announcement came in below expectations. IBM's share price has taken quite a hit - and dragged down the likes of Capgemini with it. But the results were blamed on many factors, including weakness in economies in France, Germany, Italy and Japan and low growth in the non-consulting business lines.

However, every cloud has its silver lining. For you and I at least. You see the consulting business continued to grow at 6% and more importantly the pipeline of Q2 Global Services deals is up considerably - meaning consulting at least should continue to thrive.

So when you see doom & gloom stories about IBM in the coming days - of which there are bound to be many - do remember that this is one giant company and that the consulting business is doing just fine.

For further coverage, take a look at CBS, Bloomberg or ZDNet


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