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Is hardware companies acquiring services firms a sustainable market trend?

Created by : Prakash Kumar, Consultant (IT Services Strategy), Dell International Services (India)  | 01 11 2010 18:01:13 +0000
Industry : IT ServicesFunctional Area : Global Business(Strategy & Execution)
Keywords : merger and acquisitions it services consolidation
Activity:  180 views;  last activity : 07 06 2010 20:18:09 +0000

It looks like a race!! Hardware marging are under pressure. IT services have higher margin. It relates to hardware in some form. So lets get into this space!!!

It that so simple? I think we do not have too many success story on such acquisitions. 

 
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Services business is different and are not plain additive to any hardware business. Many factors - including cultural differences, selling approaches, client relationship management will demand big shift in the way company operates. Unless company is well prepared to absorb these shocks, success may be elusive.
By Prakash Kumar, Consultant (IT Services Strategy), Dell International Services (India)  | 01 11 2010 18:01:13 +0000
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