Annual Review and summary financial statement

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Annual review > Delivering today Investing for tomorrow > ICT

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Information and communications technology

Corporations and other large organisations rely increasingly on communications and information technology for mission-critical services and to remain competitive. And with the convergence of both these technologies, we have a great opportunity to establish ourselves as a global ICT player capable of competing with the world’s best. In fact, this is already happening. Recent contract wins have propelled us into the world league of ICT companies.

From connectivity to capability
Being in the ICT business means offering not just connectivity but capability, not just integration but innovation. 

The impressive growth in our ICT revenues – to £2.6 billion in the 2004 financial year, a rise of 19% on the previous year – indicates the speed with which we are making our presence felt in this market. 

Of course, our strategy is a focused one – we can’t go after everything. Instead, we’ve targeted a number of growth markets in which we are particularly well placed. 

These include: outsourcing, the provision of IP (internet protocol) infrastructure, broadband, mobility, managed desktop solutions and customer relationship management. 

And they’re the right markets for us because they make use of our skills and experience, our brand has clear value and our partnerships reinforce our capabilities. 

In February 2004, for example, we launched BT Applications Assured Infrastructure (AAI), designed to help our customers understand and master the complexities of their communications infrastructure – all the way from the data centre to the desktop. 

And just as importantly, it makes it possible for us to guarantee that our customers’ ICT systems really do support their business priorities. 

AAI is what’s known in the business as an “intelligent solution”, which means that it can help resolve networking problems before they happen. 

That’s competitive advantage. And it’s the kind of competitive advantage that BT is increasingly delivering. 

BT’s larger and more complex global customer contracts are delivered through or managed by BT Global Solutions and BT Syntegra.

Networking the NHS
The highest profile of these were three NHS contracts which are expected to be worth more than £2.1 billion and form an integral part of the National Programme for Information Technology in the NHS. These contracts represent some of the largest BT has ever won. 

One, worth up to £620 million over ten years, is to design, deliver and manage a national patient record database and transactional messaging service for the NHS Care Records Service. This will provide all 50 million NHS patients in England with an individual electronic care record and connect more than 30,000 GPs and 270 acute community and mental health NHS trusts in a single, secure national system. 

A second contract, expected to be worth up to £996 million over ten years, is to design, deliver and operate integrated local patient record applications and systems for the whole of the London care community. 

The third, worth an estimated £533 million over seven years, is to procure, integrate and manage high-speed, broadband networking services for the New National Network for the NHS. 

Other Deals 
In addition, we achieved a number of other groundbreaking wins in the year, including a six-year contract with ITV to create a new multimedia network, and a five-year deal with Alliance & Leicester worth £10.5 million to upgrade its existing network infrastructure to IP. 

In May 2004, BT and HP announced plans to develop a strategic alliance to address mutual growth opportunities jointly in the global ICT marketplace. As a first step, we have signed managed service agreements with a combined value of $1.5 billion over the next seven years.

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