Kyndryl Reconfigures Its European Map: Digital Sovereignty, AI, and Synergies as a Roadmap

Kyndryl Reconfigures Its European Map: Digital Sovereignty, AI, and Synergies as a Roadmap

Kyndryl, the technology consultancy born from IBM's spin-off, has taken a strategic step in Europe by creating a new unit that brings together its five most important markets: Germany, Spain, France, Italy, and Portugal. At the helm of this region is David Soto, who until June led the Spanish and Portuguese subsidiary. In a meeting with the press in Madrid, Soto and his successor in Spain, Enrique Cortés, detailed the keys to this corporate move and the opportunities they see in a context marked by the demand for technological sovereignty and the rise of artificial intelligence.

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A More Agile Structure for a Mature Market

Kyndryl is four years old as an independent company and, according to Soto, "is entering a phase of maturity" that requires simplifying its internal structure. The reduction in the number of regions aims to generate synergies between countries, especially in areas such as development centers spread across the EU. "Europe is important for the company, and this is reflected in the creation of the new unit," said Soto, who highlighted that serving multinational clients like Stellantis will be more efficient with this reorganization.

Digital Sovereignty: A Global Opportunity

The concept of digital sovereignty is gaining traction in Europe, and Kyndryl sees it as an opportunity. Soto mentioned the Kyndryl Readiness Report, according to which 83% of global IT executives recognize the importance of sovereignty, and 65% have already modified their cloud strategy due to geopolitical pressures. "We are in a moment of reflection where infrastructures have become more critical than ever," he noted. The consultancy aims to address these challenges not only in the EU but also in markets like Canada or India, where sovereignty is a growing concern, especially in the public sector.

In this context, the modernization of core systems, the development of sovereign private clouds, and the management of data platforms — "bottlenecks for AI development" — are key areas where Kyndryl seeks synergies. Soto pointed out that the traditional monopoly in data platforms is changing with the arrival of hyperscalers, opening new opportunities.

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Synergies in Cybersecurity and Talent

The new region will also integrate the security operations centers (SOCs) that Kyndryl has in Europe. Additionally, best practices will be transferred between countries: "We have detected that the teams in Germany and Italy are more advanced in regulation and sovereignty than those in Spain and Portugal. Meanwhile, Spain and Italy have a very good talent and cost mix that we can exploit to provide more service to other European countries," explained Soto. The organization is already defining processes supported by agents to make their own and clients' IT more efficient.

AI: More Opportunity than Threat

Asked about the impact of artificial intelligence on the workforce — Kyndryl announced a global layoff plan in May to accelerate automation — Soto and Cortés were emphatic: "At the European level, there will be very little restructuring; in fact, in our region we are growing." In Spain, Cortés confirmed that there will be no layoffs. "More than a challenge, we see AI as an opportunity," he stressed. "We are more the disruptors than those affected by AI, which for us is the number one bet."

The growth vectors in Spain will be security, regulatory compliance, IT infrastructure modernization, and critical system resilience. Cortés highlighted the good performance of the consulting area, which grows above the market average. Faced with competition from the big four in AI integration, he emphasized: "Our vision is different because we come from the world of critical systems management and apply AI to the management of these." Soto added: "We think from an engineering perspective and see AI as a technology that must be governed. We ourselves are customer zero."

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Implications for the IT Ecosystem

Kyndryl's restructuring reflects broader trends in the sector: the need to operate infrastructures at scale efficiently, the automation of processes with AI, and the growing regulatory pressure in Europe, as Google already warns with the DMA (see analysis). For IT professionals, this means that digital sovereignty and AI are not just concepts but forces that are reshaping the strategies of large consultancies and, consequently, business and employment opportunities.


Original source: ComputerWorld. Analysis and adaptation by ForgeNEX.

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