IT Services: an observation

IBM’s negative headlines (Easter, Hardware, China) masked the positive (read across) services data which seemed to pass most observers by. Okay, so while we can’t ignore the dates of Easter, we can certainly take comfort from the fact both Computer Sciences and Cap Gemini have (unless they did an HP without telling us last week) got no exposure to either China or hardware.  For IBM, outsourcing bookings doubled YoY and backlog rose for 1st time in 3 years. Such datapoints remain supportive for the our calls on CSC and Cap Gemini.