IBM Cloud: New York-based IBM spin-out Kyndryl to separate China business in response to changing data laws

Oct 03, 2023 | Posted by Abdul-Rahman Oladimeji

Global IT managed services provider Kyndryl is now considering separating its business in China into a separate entity in response to several geopolitical issues and the changing data laws in China.

According to a report from the Financial Times, the IBM spin-out revealed this to some of its employees. However, details about when it intends to make this move and how it plans to control the new entity are yet to be revealed. 

Kyndryl, which does business in China via its Kyndryl (China) Information Technology Company Limited subsidiary, does not separate its China revenue. However, the company’s revenue for the fiscal year 2023 was reportedly down compared to its fiscal year 2022. 

Financial Times, in its report, noted that business for Western companies in China is becoming increasingly tricky following demands from the Chinese government on foreigners in the workforce, which opposes the intent of U.S businesses to decrease the A. I related work China-based employees do for U.S. projects.