Table:
| ($ in millions) |  |  |  |
| --- | --- | --- | --- |
| For the year ended December 31: | 2018* | 2017* | Yr.-to-Yr. Percent/ Margin Change |
| Global Business Services |  |  |  |
| External gross profit | $4,448 | $4,033 | 10.3% |
| External gross profit margin | 26.8% | 25.1% | 1.7pts |
| Pre-tax income | $1,629 | $1,303 | 25.0% |
| Pre-tax margin | 9.6% | 7.9% | 1.7pts |
Paragraphs:
* Recast to reflect segment changes.
The year-to-year improvements in margins and pre-tax income in GBS were the result of the shift to higher-value offerings, realignment of resources to key skill areas, increased productivity and utilization as well as a benefit from currency, due to the company’s global delivery model.
Question:
What drove the margins and pre-tax income in GBS improvement?
Answer: were the result of the shift to higher-value offerings, realignment of resources to key skill areas, increased productivity and utilization as well as a benefit from currency, due to the company’s global delivery model.