3 What do you think are the key challenges that the organisation faces today? IBM is widely regarded as a successful service company providing its business customers with solutions to their problems. In 2003 IBM had a turnover of over $89 billion and a gross profit of

$33 billion. While sales of hardware and software accounted for just over 50 per cent of revenue, the remainder, and around 30 per cent of the gross profit, was generated by IBM Global Services (IGS), a rapidly expanding part of the business. IGS has a wide portfolio of services with, for example, computer installation and maintenance services at one end of the spectrum, and its wide-ranging business consulting services at the other.