IBM goes casual, drops white shirts, and plans a woodsier headquarters

Article Abstract:

IBM Chmn Louis V. Gerstner Jr. is retiring the company's old dress code of white shirts, baggy dark suits and boring ties and building a new more casual headquarters. IBM staffers will be allowed to wear casual clothes at the company's Armonk, NY, headquarters. The company is planning to sell its hilltop headquarters and build new facilities on another portion of its 450-acre site. The new facility, expected to cost $60 million to $70 million, will feature a smaller, campus-type surrounding. Experts say Gerstner is tired of IBM's current outdated facilities. The current headquarters for the world's largest computer vendor is embarrassingly short of high-tech features, including adequate wiring for computers and cable TV and satellite ties for videoconferencing capabilities.

Electronic computers, Microcomputers, Microcomputer industry, Facility Relocation, Company Business Management, Company Operations, Corporate Organization

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IBM plans shift of 'outsourcing' to a new unit

Article Abstract:

IBM will change the way it manages other companies' data centers. Such 'outsourcing' operations will be moved to a new subsidiary. The move is explained as a way to avoid certain legal restraints and to help IBM generate more of its revenue by selling software and services, rather than just computers. IBM previously handled outsourcing through its Systems Services Division, but the company has encountered difficulties that have to do with a consent decree signed with the US government in 1956. The decree is generally understood to prohibit IBM from direct involvement in the 'service bureau' business.

Data processing and preparation, Outsourcing, Computer Industry, Legal Issues, Organization Structure

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