What the New Dell Means for IT Outsourcing Customers

Partner David Rutchik provides expert analysis in this article about the IT outsourcing impacts of Dell’s decision to go private. Sample excerpts: "'On the positive side, Dell will no longer be driven by quarterly earnings pressures and the need to put more resources behind the largest part of their business-PCs [rather than] outsourcing,’ says David Rutchik, partner with outsourcing consultancy Pace Harmon….'By getting away from public scrutiny, they will be freed up to make investments in tools and in other areas to better compete in the IT outsourcing space, even if they won't move the earning needle overall in the near term,’ Rutchik says…‘IT outsourcing customers should challenge Dell's commitment to the IT outsourcing space, as well as its ability to contribute free cash flow to innovation, technology and process improvement when they have a large debt to service,’ says Rutchik of Pace Harmon. ‘It's certainly [not] inconceivable that the IT outsourcing business [could be] spun off or sold in the future to reduce financial leverage and drive increased focus on what is still very much the core business of hardware.’”