IBM Global Services

1
IBM Global Services

• Tram Tran
• Breanne Schmidt
• Rich Milos
• Michael

2
Overview

• Case background
• IBM Global Services
• Washington Mutual
• Illinois banking market potential
• Selecting a statistical series
• Determining the relationship
• Determining market potential
• Questions and answers

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IBM Global Services

• Worlds largest IT service
• More than 125,000 employees in 160 countries
• IBM Global services accounts for nearly 1/2 of
  all IBM revenues which include services,
  hardware, software, and research.

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Washington Mutual

• Profitable and rapidly expanding bank
• Outsourced IT services with IBM
• WAMU wanted to integrate internet based
  strategies into existing IT infrastructure
• WAMU signed IBM to a 10 year outsourcing contract
  worth 533 million

5
Illinois Commercial Banking Market Potential

• Single series method (calculates MP)
• Selecting a statistical series
• Determining the relationship
• Determining the market potential

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Selecting a statistical series

• IBM uses the of employees as the statistical
  series
• Using the NAICS, we determined how many employees
  are in the Illinois commercial banking industry
• Using http//www.census.gov website we found
  85,223 employees in Illinois

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Determining the Relationship

• The trade association estimates that IT
  expenditures per employee are 250 in the
  commercial banking industry

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Determining Market Potential

• The demand or usage factor is multiplied by the
  forecast of the statistical series
• MP 85,223 x 250 21,305,750
• (employees) x (expenditures per
  employee)
• The MP is 21,305,250 dollars per year

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Questions or comments?