Kyndryl’s Three A’s Strategy: Driving Revenue Growth and Cost Savings for IBM Spinoff

Kyndryl, the heritage spinoff from IBM, has achieved remarkable success in its Fortune 500 strategy under the leadership of CFO David Wyshner.

With a focus on increasing revenue and saving millions, Kyndryl implemented a three-part plan known as the "Three A's": alliances, advanced deliveries, and accounts. This strategy has not only positioned the company for long-term, profitable growth but also resonated with shareholders, as evidenced by its impressive financial performance.

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The first component of the plan, alliances, involved transitioning from being an IBM captive to collaborating with a broader range of leading technology providers.

Through alliances with AWS, Microsoft, and Google Cloud, Kyndryl secured $1.2 billion in cloud hyper-scaler contracts, surpassing its billion-dollar goal. These collaborations have allowed the company to expand its offerings and attract new customers.

The second component, advanced deliveries, focused on capitalizing on customers' cloud and modernization needs. Kyndryl invested in training its workforce, resulting in over 35,000 cloud platform certifications—a significant increase from the previous year.

By redeploying over 5,500 delivery professionals to support new revenue streams and address attrition, Kyndryl achieved annualized savings of $275 million, exceeding its target of $200 million.

The third component, accounts, aimed to improve profits and modernize clients' IT systems through solutions like Kyndryl Consult. By leveraging this initiative, the company successfully saved $210 million annually.

The accounts program has not only boosted profitability but also helped Kyndryl establish stronger relationships with its clients.

While implementing such a comprehensive strategy required significant effort and cultural change, Wyshner emphasizes the organization's commitment to success.

Aligning 90,000 personnel internationally during the transition process is no easy task, but Kyndryl has effectively communicated its goals and witnessed a dedicated response from its workforce. The company's internal alignment and focused culture have played a crucial role in driving its transformation.

As Kyndryl continues to work through its old contracts, Wyshner remains optimistic about the success of the Three A's strategy and finding the best ways to communicate its achievements.

With its impressive revenue growth, cost savings, and successful collaborations, Kyndryl has emerged as one of the largest firms in the United States by revenue, solidifying its position as a leading IT infrastructure services provider.

As the company continues to navigate its transition and work through old contracts, the Three A's strategy will undoubtedly play a pivotal role in Kyndryl's continued growth and success.