Kyndryl spun off from IBM’s IT infrastructure services (the former Global Technology Services) in November 2021. The company is the largest IT infrastructure services firm, with FY25 (the year ending March 31) revenues of $15.1bn. Kyndryl has undergone transformation, still dealing with its legacy of unprofitable contracts from the IBM era. It has favored, in the short term, profitability improvement over revenue growth as it renegotiates/terminates “pre-spin-off” contracts and lowers its costs through Indian offshoring and automation. The company has also shifted its service portfolio from run/managed to build services (with Kyndryl Consult), targeting cloud migration, mainframe modernization, and security, among other priorities. Kyndryl has also further expanded its technology priorities from the low-growth IBM ecosystem to the hyperscalers and other partners.
Beyond contract selectivity, Kyndryl has invested in its core business, for instance, with Kyndryl Bridge, a dashboard/observability tool that collects data from IT tools, runs analytics, and automates standard incident resolution. The company is currently GenAI-ifying Bridge and claims that the tool has been instrumental in increasing its NPS, despite a reduction in headcount and the relocation of delivery to India.
The future looks promising for the firm, which has 4,000 global clients, including most of the tier-one banks and insurers worldwide, and holds strong positions in healthcare & public sector, retail & commerce, as well as transport & travel. Clients trust Kyndryl for its mainframe and large IT infrastructure contract legacy and continue to renew contracts.
Recommended advisory: PAC Leadership Session – AI in Business Transformation
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