BT 2008 Annual Report Download - page 24

and integrate a wide array of new applications that will add
features and value both to the new 21CN services, and to
completely new services.
Keeping our costs down
We continue to benchmark ourselves against the best in the
industry to determine where efficiencies can be generated. We
remain focused on financial discipline and on delivering
efficiency programmes to generate sustainable cost efficiencies.
Cost transformation programmes delivered £625 million of
savings in 2008 and we expect to deliver around £700 million in
2009. Many of these programmes are closely linked to ‘right
first time’ initiatives, which have the dual benefit of reducing
our cost of failure as well as enhancing the customer experience.
We have, for example, continued to enhance the ways in
which customers interact with BT. The number of transactions
completed via bt.com rose by more than 90% in 2008. At
31 March 2008, we had 3.6 million customers receiving e-bills,
almost 1.9 million of whom do not receive paper bills. In
response, we have planted one million trees over the past three
years.
We remained focused on reducing the number and complexity
of our systems and processes (see Our IT systems and networks
estate on page 30). Other key programmes relate to innovative
procurement and sourcing.
We continued to explore the possibilities of flexible and agile
working. At 31 March 2008, 23% of BT people doing what are
conventionally thought of as ‘office jobs’ did not have a
dedicated desk of their own. Rather, they used a combination of
homeworking and/or flexible workstations which can be shared
by multiple users.
We also made progress in 2008 in our drive to streamline our
organisation and eliminate duplication. This will remain a priority
in 2009.
Acquisitions and disposals
BT actively reviews its portfolio of assets and acquisition
opportunities in its target markets. We will consider acquiring
companies if they bring us skills, technology, geographic reach
or time to market advantage for new products and services.
2008
During 2008, we completed a number of key acquisitions:
Date Acquisition
May 2007 We acquired Mumbai-based i2i Enterprise Pvt Ltd,
which specialises in IP communications services for
major Indian and global multinational companies.
i2i is a provider of enterprise telecommunications
systems in the Indian market, and distributes BT
Infonet’s managed network services and products
nationwide. This acquisition underscores our
commitment to India, currently one of the world’s
fastest growing IT and business process outsourcing
markets.
June 2007 We acquired Comsat International – a provider of
data communication services for corporations and
public sector organisations in Latin America –
through its parent company, CI Holding
Corporation. Comsat International employs more
than 700 professionals with in-depth knowledge of
Latin American markets and provides services
directly in 15 countries. It has a track record in the
delivery of complex projects and the management
of network solutions for enterprise, public sector
and carrier customers.
November
2007
We acquired the IT infrastructure division of CS
Communication & Syste
`mes – the French IT systems
and network services provider for up to E60 million
(including debt assumed). The division provides
corporate and public sector clients with a range of
services for building and maintaining IT
infrastructures, including consulting, network
integration, insourcing, outsourcing and data centre
services.
January 2008 We completed the merger between BT Italia SpA
and I.NET SpA. The merger followed the acquisition
by BT of Etnoteam’s 13.6% stake in I.NET and the
subsequent public tender offer for the remaining
shares in public hands in April 2007. BT Italia is
Italy’s leading supplier of communications solutions
and services dedicated solely to business and public
sector customers. I.NET is an acknowledged leader
in security and business continuity solutions.
March 2008 We acquired Frontline Technologies Corporation Ltd,
one of the leading providers of end-to-end IT
services in the Asia Pacific region, for approximately
S$202 million. Frontline provides IT consulting,
infrastructure services, systems integration and IT
outsourcing to local, regional and multinational
companies and has operations in China, Hong Kong,
India, Indonesia, Malaysia, Singapore, the
Philippines, Taiwan, Thailand and Vietnam. Its
acquisition enhances our existing networked IT
services capabilities in the region.
.............................................................................................................................................................
efficiency savings in 2008
£625m
BT Group plc Annual Report & Form 20-F 23
Report of the Directors Business