Global service provider aims to double turnover in high-growth regions

4th May 2012

By: Samantha Herbst

Creamer Media Deputy Editor

  

Font size: - +

Global information technology (IT) services provider BT Global Services, a subsidiary of UK-based British Telecommunications Group, has embarked on a series of initiatives aimed at doubling its turnover across the Turkey, Middle East and Africa regions, which have a combined addressable market worth £5.4-billion (over R60-billion).

BT Global Services sub-Saharan Africa regional director Keith Matthews says these initiatives, which were built on similar programmes already under way in Asia Pacific and Latin America, will support global and regional customers seeking to invest in these high-growth regions that are recognised for their significant growth opportunities.

BT Global Services CEO Jeff Kelly recognises the Middle East, which already hosts some of the world’s main business hubs, as one of the most crucial regions for many of the company’s customers. “New opportunities are rapidly emerging in the region and we are now expanding from our thriving base in the United Arab Emirates,” he says, also recognising Turkey as a key business bridge between Europe, Asia and the Middle East.

He comments that sub-Saharan Africa is also still a new frontier for ambitious busi- nesses and that the region is currently showing strong growth rates. “We are extending our network capabilities in that region beyond our South African operation, with the ambition of serving our customers wherever they seek opportunities,” he says.

As a result of domestic markets in the US, the UK and Europe clamping down on IT and telecoms expenses since the 2008 global economic slowdown, the service provider’s existing multinational clients have had to identify emerging markets elsewhere to deliver growth, bringing BT in to build their IT services and telecoms capabilities in new markets.

“BT’s clients have been able to leverage their investments through outsourcing, and they wanted to see that extended,” says Matthews. To meet its clients’ growing needs, BT established Prosperity, a programme that has enabled the service provider to deliver consulting, integration and management services, as well as provide local support for its clients in those regions.

The pilot programme was launched in Asia Pacific in 2010, followed by Latin America late last year, and now in the Middle East and Africa.

Having just crossed its 18-month threshold, Prosperity is progressing well, says Matthews, adding that the experience from the Asia Pacific and Latin America programmes will pave the way for smooth roll-out in the Turkey, Middle East and Africa regions.

“You cannot throw money at a development without knowing how to effectively roll out the growth plan. A lot of lessons came out of the Asia Pacific experience specific to internal programme management,” says Matthews.

He adds that the organisation also brings with it a keen focus on good governance and practice as a result of the highly regulated telecoms industry in other regions where BT operates.


Matthews points out that each region has its own individual market and telecoms infrastructure and, while people all over the world process technology, the addressable market will differ from region to region.

Asia Pacific, for example, is more connected and structurally advanced than Africa.

Further, regions within Latin America and Africa will range from being structurally advanced in one area to being remote and underdeveloped in the larger rural parts of those regions.

“It changes the way you do business, as well as the way you map services and people around an area,” says Matthews. He adds that BT tries to replicate previous successes in similar market spaces. “The new projects are an extension of what we’ve already done successfully,” he says.


With the new series of initiatives, BT will expand its staff complement by more than 200 people across Turkey, Africa and the Middle East over the next three years. About 100 of those will be employed in South Africa alone, says Matthews.

He maintains that the company has a good understanding of the exact skills sets it needs.

“Typically, we’re looking for people that have a high level of experience, training and development, specifically skilled people that help us manage not only what our clients need us to manage on their behalf but also the supply chains and partners that we work with to develop that business. The aim is to sharpen those skills and refine them in the context of how BT operates,” he says.


Matthews stresses that while BT has found ways to expand its services globally, it also aims to improve network reach and access options in sub-Saharan Africa to retain the competitiveness required in the local market.

This includes investing in the FibreCo fibre infrastructure development consortium, which is investing R5-billion to roll out a 12 000 km open-access long-haul terrestrial fibre-optic broadband network in South Africa, which is being rolled out in three phases.

As an anchor tenant, BT also owns part of that network.

“We are hopeful that we’ll be able to offer many of our services on a network that we actually own,” says Matthews.

He is optimistic about the state of South Africa’s telecoms industry, saying that the country has one of the most exciting telecoms markets in the world today. “The fact that we have so much subsea cable landing on our shores and so many providers with access to international capacity . . . bodes well for the domestic market.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION