They just lost some major contracts due to unresponsiveness and poor service. They shifted the customers call centers offshore and they were getting huge complaints not to mention they cut staff until they couldn't keep up with the work.
As I said, “the inefficient layers of administrative overhead and effective management of offshore delivery are more of issue than their shifting to a higher ratio of offshore labor”.
They’re losing business to companies with higher percentages of offshore workers: IBM’s problem isn’t too much offshoring, it is poor management, including management of their offshoring.