IBM Consulting Interviews - Navigating The IBM GBS Maze - Management Consulted

24/07/2016
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IBM CONSULTING INTERVIEWS: NAVIGATING THE IBM GBS

MAZE
IBM Consulting Interviews: Navigating

the IBM GBS Maze
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IBM GLOBAL BUSINESS SERVICES (GBS)

The history of IBM GBS is one of our very favorite business stories of all time, and one that reminds us
that even the most enormous, boring and troubled companies can re-invent themselves.
As the next installment in our popular Firm Pro le series, we take a look at the evolution, reinvention,
and current interview tactics of one of the worlds premier consulting rms IBM. Enjoy the ride!
IBM GBS KEY STATS

https://managementconsulted.com/consultinginterviews/ibmconsultinginterview/
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IBM GBS Website:www-935.ibm.com/services/us/gbs/consulting/ (http://www935.ibm.com/services/us/gbs/consulting/)

IBM GBSHeadquarters: Armonk, NY
IBM GBSEmployees:80,000+
IBM GBSLocations:300+ of ces in 170 countries
IBM GBSChief Executive: Bridget van Kralingen
IBM GBSRevenue: $18.6B+
IBM GBS Engagement Cost: $300k $500k
IBM GBS HISTORY

IBM was founded in 1911 and has a rich history of ingenuity, deep convictions, premier research and
development, and trend setting. IBM touts its sustainability and relevance as a global services leader
by pointing to historical times the rm re-invented itself as a company. It should be no surprise since
they have been the birthplace of many technological advances, were one of the founders of the entire
personal computer industrial revolution, and now are leaders in new software platforms, hardware
infrastructure and workplace equality.
Recognizing clients needs for help managing IT operations and resources, IBM Vice President Robert
M. Howe created the IBM Consulting Group in 1992. Although it started as a tiny group, paling in
comparison to the behemoth revenues of the rms hardware sales, this group is now known as IBM
Global Services (IGS) which is responsible for 50% of IBMs revenue globally.
IGS has 5 divisions/branches. Those divisions are IT Services, Global Business Services, Outsourcing
Services, Training, and Additional Services because its super clear to have an amorphous Additional
Services bucket, right? The division focused on in this article is IBM Global Business Services (IBM
GBS). IBM GBS is responsible for 20% of IBMs global revenue and is one of the most pro table
divisions across all of IBM.
IBM rst realized customers neededmore than hardware in 1989. Eastman Kodak Company and IBM
completed an agreement hiring IBM to design, build and manage a new state-of-the-art data center for
Kodak in Rochester, NY under the brand name Integrated Systems Solutions (ISSC). The scale of the
program investment included a back-up system, which opened the door to data management and
related services for ISSC as well as other clients. During this same year, IBM introduced Business
Recovery Services as a formal business offering for customers, enabling them to continue operations
in the event of an unplanned outage or disaster.
In 1991, IBM approved a new world-wide services strategy to make IBM a world class services
company by 1994. IBM began restructuring its ISSC subsidiary to provide a broader range of
outsourcing services to customers. During this same time, IBM and Coopers & Lybrand formed
Meritus Consulting Services to provide strategic advice to businesses in the consumer packaged
goods, pharmaceutical, aerospace, and automotive industries.
1992, IBM unveiled another service called IBM Consulting Group. This department had 1,500
consultants worldwide servicing companies and organizations in 30 countries. These services focused
on business management and information technology.
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During 1992 and 1993, IBM U.K., IBM Czechoslovakia, and IBM Japan created their own regional
consulting services departments to meet business client service needs in each speci c region.
Confused yet? Just stick with us. We were too
Obviously, IBMs service sector worldwide was booming, which led to unrestrained and completely
disorganized growth. Their total services revenue by 1993 was $17B not a bad growth rate.
However, amazingly, IBM didnt make a pro t on services until it consolidated all the worldwide
business services into a single global team branded IBM Global Services in 1995. Dennie M. Welsh
was named General Manager, Global Services. Just goes to show you that revenue growth isnt the
only name of the consulting game.
Heres a quick overview of IBMs service offerings path to become IBM Global Services:
Never fear the transition didnt stop. However, the name remained the same but IBM began to
absorb other services companies with unique services offerings over the following 10 years.
In 1998, IBM acquired The Chem Systems Group Inc. They were a management consulting rm whose
clients were chemical and petroleum companies. This acquisition was merged into IBM Consulting
department of IBM Global Services.
In 2002, many large accounting rms were selling off their management and technology consulting
segments. Pricewaterhouse Coopers was one of them. IBM GBS jumped at the opportunity to
purchase PwC for the great price of approximately USD$3.9B in cash and stock. This about doubled
the number of consultants within IGS, adding 30,000 Consultants in 52 countries.
2004 was the next major shift towards a services focus for IBM. IBM sold off its consumer-focused
computing systems and PC hardware side of the business to Chinese manufacturer, Lenovo, for a
historic sale of USD$1.75B. This reinforced the prominent vision and future of the Global Services
division. The only IBM desktops or laptops that you can purchase from IBM today are previously
owned and refurbished systems. In the mid-2000s at Bain, McKinsey and BCG, you couldnt nd a
laptop that wasnt IBM issued it was a consultant trademark.
Fast forward to today. IBMs target market for consulting services became the clients who were willing
to pay for higher-value corporate services packages ofresearch, software and services. The rm has
landed on a high-price, high-value service offering specializing in providing the best skills the rm has
become more discriminating on client selection.
Well see how this strategy sticks in recent years, IBM has grown so much (impressively so, and
eclipsing virtually every competitor in the services space) that its pathway for continued revenue and
pro t growth is a little unclear. The rm has also grown so much, so fast that its culture has lost focus
and the pursuit of so many strategies at once have left many clients unsure of what exactly IBM GBS
offers at the end of the day.
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IBM GBS ORGANIZATION

IBM Global Services is the worlds largest business technology services provider. The largest arms of
their service sectors are Global Business Services (GBS) and the Global Technology Services (GTS)
branches.
Practice Areas
IBM Global Business Services is broken down into 2 primary practice areas:
Business Consulting and Systems Integration
Application Management Services
There are 6 specialty areas of Business Consulting:
Business Strategy
Finance Risk
Information Technology
Marketing Sales & Service
Operations and Supply Chain
Organization and People
Systems Integration and Application Management Services are the implementation arms of the
Business Consulting group.
Industries
IBM Global Business Services serves multiple industries (these are great for networking if you are an
experienced hire):
Aerospace & Defense (http://www-935.ibm.com/industries/aerospacedefense/)
Automotive (http://www-935.ibm.com/industries/automotive/)
Banking (http://www-935.ibm.com/industries/banking/)
Chemicals and Petroleum (http://www-935.ibm.com/industries/chemicalspetroleum/)
Communications (http://www-935.ibm.com/industries/communications/)
Consumer Products (http://www-935.ibm.com/industries/consumerproducts/)
Education (http://www-935.ibm.com/industries/education/)
Electronics (http://www-935.ibm.com/industries/electronics/)
Energy & Utilities (http://www-935.ibm.com/industries/energy/)
Financial Markets (http://www-935.ibm.com/industries/ nancialmarkets/)
Government (http://www-935.ibm.com/industries/government/)
Healthcare (http://www-935.ibm.com/industries/healthcare/)
Insurance (http://www-935.ibm.com/industries/insurance/)
Life Sciences (http://www-935.ibm.com/industries/lifesciences/)
Media and Entertainment (http://www-935.ibm.com/industries/mediaentertainment/)
Metals and Mining (http://www-935.ibm.com/industries/metalsmining/)
Retail (http://www-935.ibm.com/industries/retail/)
Travel and Transportation (http://www-935.ibm.com/industries/traveltransportation/)
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Competitors
Most of these are similar to IBMs offerings business consulting advice with the hopeful follow-up
sale of a system integration and ongoing management.
Accenture biggest services competitor
Cognizant very technology focused
HP Services also hardware/software focused
Infosys Consulting Inc. large global brand, less strategy and more technical focus
Tata Consultancy Services stronger international focus
Of ce Locations
Asia
Tokyo, Japan
Moscow, Russia
St. Petersburg, Russia
Ha Noi, Vietnam
Ho Chi Minh City, Vietnam
Australia
Sydney, New South Wales
Canada
Calgary, AB
Montreal, QC
Ottawa, ON
Toronto, ON
Europe
Copenhagen, Denmark
Paris, France
Toulouse, France
Walldorf, Germany
Berlin, Germany
Frankfurt, Germany
Hamburg, Germany
Essen, Germany
Stuttgart, Germany
Dresden, Germany
Dusseldorf, Germany
Prague, Poland
South America
Buenos Aires, Argentina
Rio De Janeiro, Brazil
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Sao Paulo, Brazil

Santiago, Chile
United States
Costa Mesa, CA
Los Angeles, CA
Menlo Park, CA
Palo Alto, CA
Sacramento, CA
San Diego, CA
San Francisco, CA
San Jose, CA
Walnut Creek, CA
Broom eld, CO
Denver, CO
Hartford, CT
New Haven, CT
Stamford, CT
Washington, DC
Atlanta, GA
Arlington Heights, IL
Chicago, IL
Rosemont, IL
Baltimore, MD
Bethesda, MD
Boston, MA
Burlington, MA
Cambridge, MA
Spring eld, MA
Detroit, MI
Grand Rapids, MI
South eld, MI
Minneapolis, MN
Kansas City, MO
Saint Louis, MO
Cary, NC
Charlotte, NC
Greensboro, NC
Raleigh, NC
Jersey City, NJ
Princeton, NJ
Albany, NY
Armonk, NY
Buffalo, NY
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New York, NY
Melville, NY
Syracuse, NY
Rochester, NY
Cincinnati, OH
Cleveland, OH
Columbus, OH
Dayton, OH
Toledo, OH
Harrisburg, PA
Philadelphia, PA
Pittsburgh, PA
Knoxville, TX
Memphis, TN
Nashville, TN
Austin, TX
Fort Worth, TX
Houston, TX
Irving, TX
Arlington, VA
Fairfax, VA
Fall Church, VA
Mclean, VA
Richmond, VA
Seattle, WA
Spokane, WA
Milwaukee, WI
Career Path
New entry-level consultants are automatically a part of IBM GBS Consulting by Degree program
(CBD). This program is speci cally designed to provide experience and exposure to different projects
within all of the IBM arms of service. Each rotation into a new role lasts at least 3 months. Rotating
through Consulting by Degree roles is meant to help you hone in what types of projects you enjoy,
tests your skill levels, and become your clinic to motivate learning new skill sets.
IBM provides all the broad-business based training and offers some more specialized training subjects
like sales training, if desired. IBM CBD is strongly supported by the senior levels of management and
grads to create a clear t towards your career at IBM following the end of this program. Inside the IBM
CBD program, you move between both client engagements and internal specialty areas, which many
entry-level consultants say gives them great insight into what industries and practices they are the
most or least interested.
So, what does a career path look like in IBM GBS? Most of the consultants are within a Band
numbered 6 to 10. Some are included in lower bands, including interns. Below is the ow:
Band 4 & 5 = Interns
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Band 6 = Senior Application Consultant

Band 7 = Advisory Consultant
Band 8 = Senior Consultant
Band 9 = ManagingConsultant
Band 10 = Executives & Associated Partners
D = Partners
Internships
Employment Pathways for Interns and Co-ops (EPIC) is the umbrella program setting the standard for
hiring the top interns into IBM. There are 5 EPIC programs to choose from. See below:
Global Business Services (GBS) GBS Consultant Interns are assigned to project teams with mentorship
and on the job training. You will take on the challenging responsibilities of helping clients integrate
strategy, process, technology and information to increase their effectiveness and pro tability. These
projects come from a wide variety of industries and nations.
The GBS internships are the only ones that lead directly to GBS job offers not all internship programs
are created equal, and in fact its probably better to work outside of IBM than to take another nonGBS internship if your ultimate interest is in GBS.
The Extreme Blue Program IBMs premier internship program for students pursuing software
development and MBA degrees (but focused on those with technical backgrounds). Interns work in
teams of 4 in one of the 14 Extreme Blue labs worldwide.
Sales and Distribution (S&D) Summit Intern Program Interns will work with IBM teammates to deliver
software and hardware solutions through a consultative sales approach to the clients of all sizes and
industries. If you are passionate about client sales or utilizing technical skills to help clients solve their
business problems through the technology application, this internship could be great for you.
Research Internship Program Interns work alongside industry-leading researchers and other students
around the globe to work on innovative technologies. These positions are primarily available to
graduate students (mostly non-MBAs), but the brightest minds are encouraged to apply.
Custom Internship & Co-op Opportunities This is for students with a varied educational background
(not crazy-varied, but out-of-the-norm-yet-still-excellent varied). There are opportunities available
across all business units, including the Software Group, Systems and Technology as well as the
functional departments. Areas like nance, accounting, communications, HR and marketing.
Exit Opportunities
Without doing an exit survey at IBM (maybe we will in the future), we cant say exactly what each
segment of the armies of ex-IBMers go on to do.
Some key differences vs. MBB? Your job at IBM has fewer broadly applicable skills youre considered
more experienced in what you have already done, rather than have IBM be an indication of what you
are capable of going on to do.
Some key differences vs. other behemoths like Deloitte Strategy & Operations Consulting? At IBM,
youre more practice and capability focused, and because of the size youre more likely than a
consultant at Deloitte to be specialized in a speci c eld.
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In summary, opportunities are plenty (we would highly recommend IBM for training, in fact), but more
speci c than at Deloitte or an MBB.
IBM GBS CULTURE

IBM GBS culture has been de ned as highly innovative which now could be considered to be highly
innovative in light of its size. This isnt a Silicon Valley pioneer, but IBM is still blazing trails. Since IBM
is over 100 years old, the customer base and industries that the rm services are vast and convictions
on valuing people run deep. There is a lot of pride in the company and it is widely known that you do
not work for IBM, you are part of IBM.
All IBM employees are known as IBMers. The average age of IBM GBS employee is 38 good news for
those of you coming to the party later in your career. The hours are exible, high quality training is
provided and there are plenty of highly experienced co-workers from whom to glean insight. Travel to
client locations is required.
IBM invests over $1B per year in education and training for their employees. Most of the training is
distance learning. In fact, CBD graduates are assigned a full-time personal development manager
(PDM) to oversee the career progression, in addition to business line managers that look out for
opportunities for development when business con icts arise.
Graduate pay is known to be less than competition. Internal administrative systems are known to be
cumbersome and time consuming. Advancement in the ranks is dif cult to come by because the
average age is a bit higher, many people make their career at IBM which means that the rm has to
slow promotion in order to avoid becoming top-heavy. Most say lateral moves within the corporation
are more frequent and pay increases are nothing to write home about (but at least outpacing in ation
at about 8%/year).
Core Values
The core values of the IBM Global Business Services culture include:
Environment (http://www.ibm.com/ibm/environment/)
Supply Chain
Employee Well-Being and Diversity
(http://www.ibm.com/ibm/responsibility/employee_well_being.shtml)
Corporate Governance (http://www.ibm.com/investor/governance/)
Governmental Programs (http://www.ibm.com/ibm/governmentalprograms/)
Trust and Compliance (http://www.ibm.com/investor/governance/corporate-trust-andcompliance.wss)
University Relations (http://www.ibm.com/developerworks/university/)
IBM core values are the basis by which they make corporate decisions. These foundational core values
are:
Dedication to every clients success.
Innovation that matters to the company and the world.
Trust and personal responsibility in all relationships.
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Like many consulting rms, IBM utilizes employees who are on the beach to further corporate impact
goals so if you nd yourself in CBD, and without anything to do for a few weeks, ask if you can pitch
in on one of these themed areas you might make a major difference in a way you never thought
possible.
Awards
ConsultingMag.com.The Top 25 Consultants (2013)(#17). Jill Puleri (VP & Global Leader for
GBS). Excellence in Retail.
Money.CNN.com. 50 Most Powerful Woman in Business 2012 (#23). Bridget Van Kralingen (Sr.
VP GBS)
ConsultingMag.com.2012 Women Leaders in Consulting: Sharon Hodgson (GBS Partner). Client
Service Award.
National Trust of India2007 Appreciation Letter. The Best Employer for Persons with
Disabilities.
Clickhere (http://www-07.ibm.com/in/careers/gbs/ar.html) for additional awards and rankings.
IBM GBS INTERVIEWS AND RECRUITING

Both the interview process and time from application to offer or rejection varies widely depending on
whether you applied online, applied through a staf ng agency or through a target college/university. If
applying online or through staf ng agencies, the average interview process time line averaged 2.5
months. Applying through a target college or university averaged 3 weeks total.
The hiring process sequence may look like this:
1. Possible 30 minute Telephone Interview (non-university hires) t questions/HR screening
2. 1-2 rounds of 3 1:1 interviews, with at least 2 key t/experience questions and 1 shorter case
question by each interviewer
4 Samples of IBM interview questions are:
1. Describe a dif cult problem and how you handled it.
2. Tell me about a time when you used your diverse ideas on a team.
3. Tell me about a time you created something innovative.
4. Have you ever lived abroad?
While IBM does include case studies in the interview process, the rm focuses 60%+ of the hiring
decision on the experience/ t/behavioral part of the interview with so much invested in training,
IBM trusts its own ability to develop skill provided the incoming attitude and capability is there.
The cases are generally simple, open-ended The client does X. What would you recommend? IBM
interviewers look for high-level structure and insight with a little creativity (not too much, mind you)
that is focused on qualitative impact (implementation or a focus on people).
Example IBM Case Study question: Company X sells hardware, software and services. Over a 5 year
period they have declining revenues and at gross pro t. What would you recommend they consider
to x the problem?
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The cases usually take ~15 minutes to complete and the interviewers love it if you include some form
of technology implementation into your recommendation.
IBM Global Business Services Salaries
Are you an undergrad, MBA or intern whos interested in working at IBM Global Business Services, but
you dont know how much youll make? Check out our latest Management Consulting Salaries
(http://managementconsulted.com/consulting-jobs/2016-management-consulting-salariesundergraduate-mba-interns/) post to nd out!
Target Schools
Here is a list of the standard target schools that IBM GBS recruits from:
Carnegie Mellon University
Clarkson University
College of William and Mary
Columbia University
Duke University
George Washington University
Georgetown University
Georgia Technical Institute
Hampton University
HowardUniversity
James MadisonUniversity
LehighUniversity
Michigan StateUniversity
Morehouse College
Morgan StateUniversity
Mount Holyoke College
New YorkUniversity
North Carolina A&T StateUniversity
North Carolina StateUniversity
NorthwesternUniversity
Ohio StateUniversity
Pennsylvania StateUniversity
Princeton University
PurdueUniversity
Smith College
Spelman College
Texas A&MUniversity
University of Maryland
University of Michigan
University of North Carolina Chapel Hill
University of Pennsylvania
University of Virginia
Virginia Polytechnic Institute
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Wake ForestUniversity
WashingtonUniversity
Diversity Programs
IBM is known for its powerful industry-leading diversity exploits, and its internal support groups are
strong and cohesive. If you have alignment with any of these groups, feel free to reach out to a current
member to nd out about his or her speci c experience at IBM.
These are the 5 key IBM diversity groups:
IBM Global Asian Diversity Network Group

IBM Global Black Network Group
IBM Native Diversity Network
LGBT at IBM
Womenat IBM
Heres a little fun history about IBMs focus on diversity:
1914 IBM hired the rst disabled employee.
1934 IBM was rst company in the tech industry to hire women.
1934 IBM was the rst company to set a policy stating that all women would be paid the same as men
for doing the same type of work.
1953 IBM was expanding into the southern states. IBM President sent a personal letter to all the
Governors of those states rmly stating that IBM would not engage in segregation under any
circumstances. He also published his statements in the newspapers for the citizens to read and be
aware.
1984 IBM set policy stating they would not discriminate against sexual orientation.
2005 IBM set policy stating they would not discriminate against genetic differences.
IBM GBS LINKS

MC Articles
IBM GBS Case Interview Questions and Answers (http://www.consultingcase101.com/tag/ibmglobal-business-services/)
Rocking an IBM Interview from a Non-Target School
(http://managementconsulted.com/consulting-interviews/ibm-interview/)
2013 Management Consulting Salaries from Undergraduate and MBA to Interns and more
(http://managementconsulted.com/consulting-jobs/2013-management-consulting-salariesfrom-undergraduate-and-mba-to-interns-and-more/)
Accenture Firm Pro le (http://managementconsulted.com/consulting-interviews/accentureinterview/)
Reading
Vault on IBM GBS (http://www.vault.com/company-pro les/management-strategy/ibm-globalhttps://managementconsulted.com/consultinginterviews/ibmconsultinginterview/
12/16
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business-services.aspx)
IBM CBD Requirements (http://www935.ibm.com/services/us/gbs/consulting/careers/cbd/opportunities.html)
IBM Global Career Center (https://www-148.ibm.com/bin/subscriptions/walk_small_steps.cgi?
cl=USEN&nid=10948)
IBM Job Search (https://jobs3.netmedia1.com/cp/faces/job_search)
Social Media
IBM GBS Facebook (https://www.facebook.com/IBMBusinessServices)
IBM Google+ (https://plus.google.com/+IBM/posts)
IBM LinkedIn (https://www.linkedin.com/company/ibm)
IBM Research Pinterest (http://www.pinterest.com/ibmresearch/)
IBM Twitter (https://twitter.com/IBM)
IBM Business Consulting YouTube (http://www.youtube.com/user/Consulting)
Presentations
IBM GBS SlideShare (http://www.slideshare.net/IBMElectronics/7-6212639)
We offer resume editing (http://managementconsulted.com/management-consulting-resumes) and
interview prep (http://managementconsulted.com/management-consulting-interviews). Through oneon-one sessions, well help you stand out from 1000s of other applicants and land consulting jobs
now!
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IBM Consulting Interviews - Navigating The IBM GBS Maze - Management Consulted

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IBM CONSULTING INTERVIEWS: NAVIGATING THE IBM GBS

IBM Consulting Interviews: Navigating

(http://managementconsulted.com/consulting- rm-pro les/why-we-dig-deloitte-consultingsstrategy-and-operations-practice/attachment/logo_ rmpro le-2/)

IBM GLOBAL BUSINESS SERVICES (GBS)

IBM GBS KEY STATS

IBM GBS Website:www-935.ibm.com/services/us/gbs/consulting/ (http://www935.ibm.com/services/us/gbs/consulting/)

IBM GBS HISTORY

IBM GBS ORGANIZATION

Sao Paulo, Brazil

Band 6 = Senior Application Consultant

IBM GBS CULTURE

IBM GBS INTERVIEWS AND RECRUITING

IBM Global Asian Diversity Network Group

IBM GBS LINKS

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