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LINES OF BUSINESS
BT Global Services
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BT Global Services’ target market is the top 10,000 multi-site organisations, both overseas and in the UK, including major companies with significant global requirements, together with large organisations in target local markets.
In the 2007 financial year, BT Global Services revenue increased by 4% to £9,106 million. New wave and non-UK revenue increased by 8% and traditional revenue declined by 9%. New wave and non-UK revenue accounted for 79% of total revenue, compared with 76% in the 2006 financial year.
The continued migration of our customers from traditional voice and data services to networked IT services and managed solutions enables us to build closer, high-value relationships with these customers, helping them to manage their businesses more effectively and gain competitive advantage in their markets.
Such relationships will, we believe, deliver long-term, profitable revenue, more than offsetting the decline in our traditional business revenue.
As well as local, national and international communications services and higher-value broadband and internet products and services, we offer a comprehensive portfolio of networked IT services focused on messaging and conferencing, CRM, convergence, outsourcing and security. We also offer consultancy services to
help organisations understand network performance, operate their networks and applications efficiently and transform their businesses.
Our extensive global communications network and strong partnerships enable us to serve customers in the key commercial centres around the world using a combination of direct sales and services capabilities and strategic partners.
BT Global Services is an increasingly global operation. Although it currently generates most of its revenue in the UK, the US and Western Europe, we are anticipating strong growth in the Asia Pacific region, particularly in India where, in the 2007 financial year, we obtained both national and international long-distance licences through our venture, BT Telecom India. Markets in Japan and China will also become increasingly important. In the 2007 financial year, BT Global Services experienced particularly strong revenue growth of over 30% in the Asia Pacific region.
The revenue growth that we have experienced in Italy in recent years is a good illustration of the success of our global strategy. Thanks to a mix of both organic and inorganic growth, we are now one of the main competitors in the Italian business market.
Networked IT services
In recent years, we have developed a track record of winning and delivering complex, large-scale networked IT services contracts for large business customers and other organisations – including the public and government sectors – around the world. We have shown that we have the experience and expertise to help
our customers succeed in a world in which business applications are increasingly being networked and networks are seen as increasingly vital to productivity and competitive advantage.
BT is proving to be a world leader in delivering networked IT services through, for example, our work for the NHS National Programme for Information Technology, which is helping to transform the lives of doctors, nurses and patients across England by delivering new computer systems and services to improve the
way patient information is stored and accessed.
In January 2007, N3 – the national broadband network that we are building for the NHS – reached 18,000 connections in England, two months ahead of schedule. We are also more than two-thirds of the way to completing the Scottish N3 network. These networks provide NHS professionals with fast and secure
access to health applications, enabling them, for example, to obtain patient records and images rapidly and reliably at significantly lower cost. At the end of March 2007, the N3 network was voice-enabled, which will further reduce the cost of telephony services and bring enhanced communications between NHS sites.
In London, where we are implementing new IT systems for the NHS across the capital, we have delivered capability to over 50% of trusts and completed our rollout of picture archiving communications systems to 21 trusts. These systems enable images such as X-rays and scans to be stored, displayed, transmitted
and archived electronically rather than being printed onto film, and will bring considerable benefits to both patients and NHS staff.
In the 2007 financial year, we also completed the most complex and challenging software upgrades so far on the national database and messaging service known as the Spine, creating the infrastructure and software to support the rollout of the NHS Summary Care Record Service, which will give healthcare staff
faster, easier access to reliable information about patients.
In August 2006, we began the deployment of one of the world’s largest IP converged private networks for the Department for Work and Pensions (DWP), under an agreement signed in December 2005. The DWP is one of BT’s three largest central government clients and the contract – which runs until March 2011
– is worth £740 million over its lifetime.
In the 2007 financial year, we secured networked IT services orders (in the UK and around the world) worth £5.2 billion. This included the following significant contracts:
Date |
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Contract |
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May
2006 |
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We
were awarded a three-year extension to our existing outsourcing contract
with Unilever. The deal, which is worth around an additional £270
million, means that we will continue to deliver voice, data and mobile services
globally to Unilever until 2012. |
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July
2006 |
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We reached agreement
with Dutch electronics giant Philips on a five-year contract to provide
a fully managed solution for data, voice, conferencing and mobile communications
services in over 40 countries in EMEA (Europe, the Middle East and Africa).
We will manage Philips’ MPLS-based data transport services within EMEA,
together with voice services, managed mobility and certain metropolitan
area networks, in addition to providing global data access services, including
security services and firewalls, IP address management and conferencing
services. |
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September
2006 |
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We signed a
seven-year managed services agreement with PepsiCo Inc to provide
and manage an integrated portfolio of data, LAN (local area network), security,
conferencing, remote access and internet services to support the IT requirements
of PepsiCo’s international division. Under the terms of the contract
– which covers more than 900 locations in over 60 countries –
BT will migrate these services to a state-of-the-art, high-speed, IP-based
global MPLS infrastructure. |
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October
2006 |
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We announced
a contract with Alliance & Leicester to transform its telecommunications
infrastructure into a single, fully managed, converged network for both
voice and data communications. |
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December
2006 |
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We
signed a £322 million deal with Liverpool City Council for
a further five years to 2017. We will continue to invest in new technology
and new ways of working to deliver additional benefits across a range of
council services. This new deal increases the lifetime value of the contract
to more than £825 million. |
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February
2007 |
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We announced
that we were signing a strategic agreement with Credit Suisse, worth
over £575 million, to provide a broad package of mobile and internet
technologies and advanced connectivity services which will enhance its operating
efficiency as an integrated global bank. The contract is initially for five
years and will be delivered in partnership with Swisscom to address
requirements across Credit Suisse’s enterprise and financial trading
environments, with an additional focus on jointly creating service innovations. |
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March
2007 |
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With our partner Liberata, we signed a deal to become the private sector strategic
partner to Sandwell Metropolitan Borough Council in the West Midlands.
BT/Liberata will build a new regional business centre in Sandwell to run
a range of IT and core business services for the council, attract new business
to the borough and create jobs. The contract is valued at almost £300
million over 15 years. |
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We also
continue to build relationships with key industry players in order to enhance
the abilities of all parties to deliver networked IT services. Examples of such
successes are:
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October
2006 |
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Capgemini transferred a substantial portion of its European Networking Infrastructure
Services (NIS) operation to BT. As part of this, we have taken on approximately
250 people employed in Europe and are now responsible for providing NIS
services to Capgemini customers. The deal is for ten years. |
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November
2006 |
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We were selected
as a sub-contractor to Atos Origin to deliver a managed network service
for the Department for Constitutional Affairs. The contract is worth
£96 million over seven years. As the network services sub-contractor,
we will be responsible for migrating three existing networks to a single,
secure, resilient MPLS network. |
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February
2007 |
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HP and
BT announced that they had signed seven-year outsourcing contracts with Anglo American worth in total around US$450 million. Under the contracts,
BT and HP will jointly manage the company’s global voice services,
data centre operations and end-user workplace environment. A core part of
the agreements is a transformation programme to create an integrated global
IT infrastructure to support Anglo American’s strategy for growth. |
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Networked
IT services revenue for BT Global Services for the 2007 financial year was £4,048
million, an 8% increase compared with the 2006 financial year.
We continue to feature prominently in reviews of business capabilities. Gartner, for example, publishes a quarterly assessment of network service providers ranked by their ability to execute and their completeness of vision. In the latest Gartner’s assessment (Magic Quadrant Report of Pan-European Network Service
Providers), BT Global Services is ranked top for both. ‘BT’s broad service portfolio, large presence and range of engagement models make it a candidate for most types of organisations with pan-European networking needs.’ According to specialist researchers, Forrester, ‘There are only a handful of international network
operators that can provide complex ICT solutions that include global WAN (wide area network) services. BT stands firmly among them.’ |
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