SAN FRANCISCO (Dow Jones)--International Business Machines Corp.'s (IBM) second-quarter results Thursday show some stark contrasts, particularly in its giant services business, with areas of its business like strategic outsourcing thriving and others, such as consulting work, facing a challenging environment.

The story shows that while there is evidence of recovery in certain areas of the technology sector, corporate computing technology budgets are still some way from revival and revenue growth is largely ...

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