How will IBM consulting marriage hit Down Under?

The impact on Australia of IBM's planned acquisition of PwC Consulting won't be dissimilar from other regions, according to one industry analyst.

Rolf Jester, Gartner's chief analyst for the Asia Pacific IT services market, said that IBM has had a good consulting business, but the proposed acquisition would really strengthen it.

Jester doesn't think there will be a huge loss of jobs as a result of the acquisition, but said there might those who choose leave the company. He added, however, that it was possible there may be some rationalisation.

"Obviously nothing is going to happen for the next three months [as it has] to go through regulatory approval," Jester said.

"To be honest I don't see a lot of need for rationalisation--this isn't like a factory which makes products....these are people who are out there delivering services and they're not going to stop just because you merge the two companies."

PwC Consulting and IBM's Business Innovation Solutions would form a new unit with IBM Global Services, according to Gartner.

Gartner envisages the new unit would have 55,000 employees and US$13 billion in revenue, the analyst said in a statement.

"Although the deal may close by 30 September 2002, the transition and integration will likely continue through year-end 2002," it stated. "Transitions of this magnitude can cause disruptions, and clients may feel some as project teams take on new staff."

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