Five months ago, IBM announced plans to separate its managed infrastructure services business into a new independent company creating two market-leading companies focused on what they do best by the end of 2021.

IBM will stay focussed on being the best hybrid cloud platform and AI company leveraging our leading open platform, our incumbency, and our expertise to help clients with their digital transformations. The strong foundation we have built and increased focus put IBM on a clear trajectory for accelerated revenue and profit growth post-separation.

Meanwhile, with NewCo, we’re coming into this planned spin-off with a start-up mindset – and as the industry leader, a $19B business with 90,000 employees, a list of 4,600 clients, and a backlog business of about $60B at the time of announcement.

Since the announcement, much work has taken place in NewCo’s journey to becoming a standalone company by the end of 2021. The progress has been encouraging. NewCo has appointed key members of its senior executive team and plans are underway to unveil the company’s new name and headquarters very shortly. And soon, people managers, in the first phase of markets, will begin engaging with team members about their roles at NewCo, a process expected to take place over the second quarter, aligned to local regulatory processes. We will continue to share key updates as they become available.

As an independent company, NewCo will have greater freedom of action, set its own agenda, and target R&D investments and innovations to drive the next generation of managing complex mission-critical infrastructure. Hence, employees headed to NewCo will have a unique opportunity to build on the best of what they’ve known - helping clients make the most of technology and accelerating their digital journey while fostering a new, purpose-led company. They’ll continue contributing to its mission to design, build, and manage the most modern and reliable technology systems that the world depends on every day – all while working with thousands of customers, ensuring each achieves their peak digital performance.

It’s energizing that as a focused, independent company, NewCo will develop a diverse and open ecosystem of partners, in addition to its deep relationship with IBM. Employees can anticipate that the new partnerships will translate to additional technology services opportunities and professional growth with new skills, supported by on-going investments in training and learning. Team members will build on certifications and all they have already attained to help this business lead in various industries. They can redefine what it means to be the vanguard provider of managed infrastructure services.

People are at the center of everything NewCo will do, and as such, its success depends on having the right people and the right talent to deliver for its clients. India is a microcosm of the IBM Corporation and your skills and experience has been integral to the organization’s success. I am confident you will continue to perform at the highest levels while working with hybrid IT environments whether at IBM or NewCo.  

While there are still important milestones ahead, I’m excited about the collective future of the two companies.

This article is authored by Sandip Patel, Managing Director, IBM India