BT 2012 Annual Report Download - page 44

41
Performance
BT Global Services
In 2012 we further consolidated our position as a global
leader in managed networked IT services. We have
focused on improving our performance and serving
our customers better. We continued to sign contracts
with large corporate and public sector customers and to
make investments to extend our global capabilities and
have further reduced our cost base.
Key facts
Order intake of £6.7bn
Investments in Asia Pacific, Latin America, Turkey,
the Middle East and Africa
Relaunch of product portfolio
Operating cash flow of £183m
Operating performance
Investing for the future
We continued to invest in high-growth regions where our customers
want to expand. The investments we announced last year in Asia Pacific
are progressing well with new technology showcases in New Delhi and
Shanghai, a new secure operations centre in Sydney, a range of product
refreshes and launches, and the hiring of around 200 professionals
across the region in the key customer markets of Australia, China, Hong
Kong, India, Japan and Singapore. As a result our Asia Pacific order
pipeline has grown and we are converting it into orders.
In October 2011 we announced a series of investments in Latin
America. Through recruiting around 200 new staff, increasing our
professional services capabilities, opening new centres of excellence
and implementing a wide range of network and customer service
improvements, we aim to better support global customers investing
in Latin America and help large Latin American companies expand
globally. In February 2012 we also announced a series of investments
in Turkey, the Middle East and Africa. Global companies investing in
the region, as well as local companies expanding further afield, will
gain access to a broader portfolio of services and will be supported
by around 150 additional highly qualified staff, including professional
services specialists. Across these three regions revenue increased by
16% in 2012. We expect to increase our revenue by around £500m in
these regions over the medium term.
Cost transformation
We have continued to improve the efficiency of our operations helping
to deliver a 4% reduction in net operating costs (2011: 7% reduction).
We achieved this through:
 increasing our use of shared service centres for contract delivery
 working with our external suppliers to improve contract terms
 rationalising our network assets and our operations
 removing redundant third party circuits from our inventory
 improving our billing operations and promoting e-billing
 rationalising our property portfolio and associated infrastructure.
Products and services
In September 2011 we introduced new names for our products and
services to improve the way we sell to our customers. These new
names make it easier for customers to understand our portfolio and for
our sales community to sell it. They also help to differentiate us from
competitors by making our products more recognisable. See page 16 for
more details on our new products and services categories.
In December 2011 we announced the formation of BT Advise, which
brings together the BT Global Services experts who deliver consulting,
systems integration and managed services around the world under one
team. Customers will benefit from engaging with a team made up of
4,500 highly skilled professionals who apply industry-leading processes
and methodologies.
We have also invested in growth areas including MPLS, Ethernet, UCC,
CRM, security, mobility and cloud services. We also continue to invest in
industry-specific products and services such as our BT Unified Trading
voice service which we launched in 12 global financial centres.
Contracts
Our investment to support our customers and improve our services
has resulted in contract wins around the world with an order intake of
£6.7bn in 2012, a reduction of 8% which is more than accounted for
by the lower level of contract renewals in the year. We are seeing the
benefits from our investments in Asia Pacific, Latin America and Turkey,
the Middle East and Africa where the combined order intake was up
over 60% on last year.
Line of business performance
We have made progress during the year, both on an operational basis with
some improved measures, and financially. However, the economic climate
has been challenging.
Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information Overview
BusinessStrategy
Performance
Governance
Financial statements
Additional information