BT Global Services

BT Global Services plc
Division
Industry Telecommunications
Headquarters BT Centre,
London, United Kingdom
Area served
 Worldwide
Key people
 Luis Alvarez (CEO)[1]
Products Fixedline telephony
Mobile telephony
Broadband internet
Digital television
IT services
Owner BT Group
Number of employees
 20,000 (2012)
Website www.globalservices.bt.com

BT Global Services plc (BTGS) is a division of United Kingdom telecommunications operator BT Group. It delivers a combination of communications and IT services to over 10,000 organisations and governments worldwide.[2] Its customers include 94% of the FTSE 100 companies, 74% of the Fortune 500 companies and 100% of Interbrand’s top 50 valuable brands.[3] BT Global Services employs around 20,000 people globally,[4] with one of the largest professional services capabilities in its industry.

Luis Alvarez became chief executive of BT Global Services in October 2012.[5]

History

BT Group began operating as a private corporation after the Telecommunications Act 1984.[6]

During the 1990s, between the loosening of national telecom monopolies and the current (largely) liberalised market, BT Group entered into a number of alliances in order to serve its mainly, then, UK-based multi-national customers. From the 90's through the early 2000s, BT Group, then known as British Telecom, struggled. The company failed to secure a strong partner, struggled to expand internationally, and had significant debt.[7] In 2002 the attempt at an alliance (Concert 2 with AT&T) was disbanded. Thereafter the company brought together a number of joint ventures, partly owned assets and wholly owned subsidiaries into the single entity that exists today.

Between 2002 and 2009, the Global Services division made a string of acquisitions to expand its global footprint and broaden its business offer to customers. Most notable are Radianz, the then network arm of Reuters in 2005;,[8] the global network operator Infonet in 2005;[9] managed security market leader Counterpane in 2006;[10] US IT consultancy company International Network Services Corp. (INS) in 2007;[11] and Asian systems integrator Frontline in 2008.[12]

Customers

In 2005, BT Global Services won a multi-year worldwide outsourcing contract to provide communication and IT services to FIAT in a deal worth €450 million (£303 million) over five years across 40 countries. BT also acquired Fiat's subsidiary, Atlanet for €80 million which provides domestic telecoms services to Fiat and other business customers across Italy.[13] In 2006, Atlanet was merged with Albacom to form BT Italia.[14]

In 2006, BT Global Services agreed a £100 million seven-year worldwide outsourcing contract to provide communication and IT services to PepsiCo, across their 900 locations in more than 60 countries as well as upgrading their network infrastructure.[15]

In 2008, BT Global Services agreed a $650 million (£332 million) five-year worldwide outsourcing contract to provide communication and IT services to Procter & Gamble, across more than 1,100 locations in more than 80 countries.[16]

In January 2016, BT Global Services agreed a £100 million seven-year contract with the BBC to provide its broadcast network from April 2017, when it finishes its remaining contract with Vodafone UK via Atos. The deal will see the BBC move to a new, state-of-the-art network that will link all BBC UK sites, including 21 broadcasting centres and local radio stations, as well as connecting to the main overseas bureaux and partners for playout of the BBC’s TV channels. It will carry all video, audio and data traffic, as well as fixed-line telephony, ISDN and broadband services.[17][18]

BT Global Services also manages the global networked IT estates for the European network for global pharma company Wyeth, the global data network for China Shipping, and the inbound voice services for Air China.

BT Global Services is a supplier of networked IT services for public and corporate sector customers. BT Global Services has a government contract with the National Health Service (NHS). The NHS Connecting for Health agency and BT are building the NHS Spine, one of the world's largest transactional databases that forms the core of the NHS Care Records Service.

Finances

At the start of 2009, BT Global Services took a £340m writedown due to poor "cost controls"[19] shortly after the resignation of its CEO François Barrault. Later in the year the company reported losses of £2.1bn, despite sales of £8.8 billion.[20] BT Global Services then underwent a transformation programme, including cost saving initiatives, leading to substantial increases of EBITDA, operating profits and operating cash flow during its 2009–2010 financial year. In May 2010, BT announced an investment plan to increase its capabilities in the Asia-Pacific region. By the end of its 2010–2011 financial year, BT Global Services had increased orders with customers by 10% year on year, improved profitability, and became operating cash flow positive a year ahead of schedule.

Total income for BT Global Services in 2012–13 was £7.166bn.[21] The company offers networked IT services over its global network to customers in more than 170 countries.[22] BT's global capabilities include ability to deliver MPLS service in 197 countries, satellite services in 112 countries, telehousing facilities in 9 countries, 7 global development centres in 4 countries, 19 global service centres in 12 countries and 9 security operation centres in 5 countries.

References

  1. ↑ "BT Global Services". BT Group PLC. Retrieved 2 February 2016.
  2. ↑ BT Global services company profile
  3. ↑ BT Group Fourth quarter and year to March 31, 2013 – Business Update presentation
  4. ↑ BT Group Annual Report 2012, p117
  5. ↑ "Luis Alvarez: Executive Profile & Biography". Businessweek. Bloomberg. 23 August 2013. Retrieved 24 August 2013.
  6. ↑ "History of Telecoms Regulation in UK". training.co.uk. Retrieved 23 Jan 2015.
  7. ↑ "'Q&A: What now for BT?'". BBC News. 10 May 2001. Retrieved 23 Jan 2015.
  8. ↑ Laura Rohde (Mar 10, 2005). "BT signs hefty Reuters contract, buys Radianz". www.networkworld.com. Retrieved 23 Jan 2015.
  9. ↑ Dinesh C. Sharma (November 8, 2004). "British Telecom to buy Infonet". news.cnet.com. Retrieved 23 Jan 2015.
  10. ↑ Antony Savvas (26 October 2006). "BT acquires Counterpane for managed network security". www.computerweekly.com. Retrieved 23 Jan 2015.
  11. ↑ Antony Savvas (2 Feb 2007). "BT buys US consultant INS". www.computerweekly.com. Retrieved 23 Jan 2015.
  12. ↑ Chua Hian Hou (Mar 25, 2008). "BT completes acquisition of Frontline". news.asiaone.com. Retrieved 23 Jan 2015.
  13. ↑ "BT Wins Fiat, Buys Atlanet". LightReading. 13 December 2005. Retrieved 30 January 2016.
  14. ↑ "Albacom, Atlanet re-brand as BT Italia". Telecompaper. 27 September 2006. Retrieved 30 January 2016.
  15. ↑ Fildes, Nic (4 October 2006). "BT agrees 100 m communications deal with PepsiCo". The Independent. Retrieved 30 January 2016.
  16. ↑ Hoover, J. Nicholas (10 June 2008). "Procter & Gamble Signs $650 Million Outsourcing Deal With BT". InformationWeek. Retrieved 30 January 2016.
  17. ↑ "BBC announces next-generation broadcast network for the digital age". BBC. 29 January 2016. Retrieved 30 January 2016.
  18. ↑ Williams, Christopher (29 January 2016). "BBC awards £100m network deal to BT". The Telegraph. Retrieved 30 January 2016.
  19. ↑ "NPfIT future in question as BT reviews contract". ZD Net. 2009-01-23.
  20. ↑ "BT Global Services boss leaves after just 15 months". IDG's CIO UK. 2010-01-08. Retrieved 2010-01-08.
  21. ↑ BT Group results Fourth quarter and year to March 31, 2013 Press Release
  22. ↑ BT Group Fourth quarter and year to March 31, 2013 – Business Update presentation

External links

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