IBM Announces Divestiture of Managed Infrastructure Services

IBM's decision to divest its Managed Infrastructure Services unit from the Global Technology Services division marked a strategic shift in its business model. This move led to the establishment of Kyndryl, a new public company that emerged with a substantial workforce of 90,000 employees and a diverse client base of 4,600 across 115 countries. The formation of Kyndryl was not just a simple restructuring; it represented a significant operational realignment aimed at enhancing focus on core business areas while allowing the new entity to specialize in managed infrastructure services. The backlog of $60 billion that Kyndryl inherited indicated a robust demand for its services, positioning it as a key player in the technology services market. Martin Schroeter, who previously served as IBM's CFO, was appointed as the CEO of Kyndryl, bringing valuable experience to lead the new company in its initial phase.