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GlobalServicesDESCRIPTIONOFBUSINESSGlobalServicesisanimportant
partofthecompanysstrategyofprovidinginsightandsolutionstocustomers.The
applicationoftechnologyisbecomingincreasinglycriticaltocustomersadvantageinthe
marketplace.Asaresult,thevaluethatcustomersplaceonIBMsbusinessinsightand
solutionsisincreasing.Asthecompanycontinuestoevolve,theexpectationisthat
GlobalServiceswillplayalargerroleinterfacingwithIBMscustomers.GlobalServices
comprisesthreemainlinesofbusiness:ooStrategicOutsourcingServices(SO)provides
customerswithcompetitivecostadvantagesbyoutsourcingcustomersprocessesand
operations.oBusinessConsultingServices(BCS),formerlyBusinessInnovation
Services,deliversvaluetocustomersthroughbusinessprocessinnovation,application
enablementandintegrationservices.TheacquisitionofPwCCgreatlyenhancesIBMs
capabilitiesintheseareas.oIntegratedTechnologyServices(ITS)designs,implements,
andmaintainscustomerstechnologyinfrastructures.HISTORICALRESULTS
(dollarsinmillions)FORTHEYEARENDEDDECEMBER31:200220012000Global
Servicesrevenue$36,360$34,956$33,152GlobalServicescost26,81225,35524,309
Grossprofit$9,548$9,601$8,843Grossprofitmargin26.3%27.5%26.7%
GlobalServicesrevenueincreased4.0percent(3percentatconstantcurrency)in
2002over2001and5.4percent(10percentatconstantcurrency)in2001over2000.The
increasein2002resultedfromtheacquisitionofPwCConOctober1,2002andgrowthin
theSObusiness.GlobalServicesrevenue,excludingmaintenance,increased4.5percent
(4percentatconstantcurrency)in2002versus2001and6.8percent(11percentat
constantcurrency)in2001versus2000.Maintenancerevenueimproved1.3percentto
$5,070million(1percentatconstantcurrency)in2002versus2001anddeclined2.2
percent(up
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