IBM's Global Services division is expected to grow about 14% annually in 
coming years. In 1999, it generated $32 billion in sales--37% of the company's 
revenues


                                    MARKET
                                    GROWTH
                                     RATE                   IBM REVENUES
                                  2000-2004                    1999

BUSINESS INNOVATION                   16%                   $9 billion
SERVICES
Helping companies design
operations to take advantage
of technology and the Internet

INTEGRATED TECHNOLOGY                 13%                  $11 billion
SERVICES
Installing and maintaining
complex software and
hardware systems

OUTSOURCING                           12%                  $11 billion
Operating computer systems
for large corporate customers


                                  STRENGTHS                WEAKNESSES

BUSINESS INNOVATION               Has sold to the          Not as nimble as
SERVICES                          world's top corpor-      Net-focused upstarts
Helping companies design          ations for years,        because of its many
operations to take advantage      giving it an in          management layers.
of technology and the Internet    with key customers.      Seen as stuffy and
                                  Global presence          uncool by some
                                  lets IBM serve           dot-coms
                                  clients in more
                                  countries than
                                  rivals can

INTEGRATED TECHNOLOGY             Unique abilities         Some clients may
SERVICES                          in niche markets,        fear IBM will
Installing and maintaining        such as testing          recommend ''all blue''
complex software and              reliability of           solutions. In con-
hardware systems                  systems from             trast, rival consul-
                                  various vendors.         tants, such as Andersen
                                  As the world's           Consulting, don't make
                                  largest maker of         their own equipment
                                  mainframe compu-
                                  ters, IBM knows
                                  better than almost
                                  anyone how to con-
                                  nect them to the
                                  Net

OUTSOURCING                       Well-known brand.        Late to enter key
Operating computer systems        Strong in Europe         Web-hosting business
for large corporate customers     and Asia, where
                                  outsourcing will
                                  grow more rapidly
                                  in coming years


DATA: IDC, SANFORD C. BERNSTEIN & CO.