BT Global Services: enterprise strategy review 2010
BT Global Services has been significantly restructured since our last assessment of its business to separate out local from global capabilities. The good news is that it has retained most – if not all – of its major outsourcing contracts. Some customers might have wanted to exit BT, but they are serving out their terms. Big renewals such as the recent Unilever contract extension back up our overall sense, having spoken with its customers, that there is continued goodwill towards BT Global Services.
Executive summary
In a nutshell
Ovum view
Key messages
Public sector caveat
Market position
Summary structure and key developments
Organizational capability improved
Financial summary: EBITDA margin in a slow recovery
Legacy products hold the line
Acquisitions in IT services dry up
Ovum interim conclusion
Products and services
Network reach
MPLS, VPLS, Ethernet: volumes and key development
Network investment plans in Ethernet
Retirement of frame relay/ATM networks
The service portfolio
Focusing on value-added services
Network operational efficiency
Unified communications
IT Services
Managed mobility
BT gives the cloud its network building blocks
Cloud versus network
Commercial performance
Measure of success: 12 months versus five years
Drivers for change
Sales support
Service delivery
New commitment to the BT HP Alliance
Interim conclusion
Professional services organization
Professional services in the product line
Service management
Commercial management
Scale advantage
Vertical or niche premise
Price positioning
Standardizing service support in the UK
Design underpins service consistency
Market impact
Contract mix shows pace of transformation
Enterprise applications not evident
Focus on core services
Strategic evaluation
Key opportunities and issues to address
Key areas for development
BT Global Services must fit in with group strategy
In a nutshell
Ovum view
Key messages
Public sector caveat
Market position
Summary structure and key developments
Organizational capability improved
Financial summary: EBITDA margin in a slow recovery
Legacy products hold the line
Acquisitions in IT services dry up
Ovum interim conclusion
Products and services
Network reach
MPLS, VPLS, Ethernet: volumes and key development
Network investment plans in Ethernet
Retirement of frame relay/ATM networks
The service portfolio
Focusing on value-added services
Network operational efficiency
Unified communications
IT Services
Managed mobility
BT gives the cloud its network building blocks
Cloud versus network
Commercial performance
Measure of success: 12 months versus five years
Drivers for change
Sales support
Service delivery
New commitment to the BT HP Alliance
Interim conclusion
Professional services organization
Professional services in the product line
Service management
Commercial management
Scale advantage
Vertical or niche premise
Price positioning
Standardizing service support in the UK
Design underpins service consistency
Market impact
Contract mix shows pace of transformation
Enterprise applications not evident
Focus on core services
Strategic evaluation
Key opportunities and issues to address
Key areas for development
BT Global Services must fit in with group strategy
LIST OF TABLES
Table 1: BT’s major acquisitions in IT services
Table 2: Cloud services from global telecoms operators
Table 1: BT’s major acquisitions in IT services
Table 2: Cloud services from global telecoms operators
LIST OF FIGURES
Figure 1: BTGS’ operational structure from May 2009
Figure 2: BTGS adjusted EBITDA performance
Figure 3: BTGS legacy revenues
Figure 4: BTGS revenues in networked IT and MPLS
Figure 5: BTGS mobility offer
Figure 6: The evolution of the network
Figure 7: BTGS order pipeline 2008–10
Figure 8: Changing role of the contract principal
Figure 9: Telco global services deals, 2H09
Figure 10: ICT services revenue market shares, 2009
Figure 1: BTGS’ operational structure from May 2009
Figure 2: BTGS adjusted EBITDA performance
Figure 3: BTGS legacy revenues
Figure 4: BTGS revenues in networked IT and MPLS
Figure 5: BTGS mobility offer
Figure 6: The evolution of the network
Figure 7: BTGS order pipeline 2008–10
Figure 8: Changing role of the contract principal
Figure 9: Telco global services deals, 2H09
Figure 10: ICT services revenue market shares, 2009
