BT 2014 Annual Report Download - page 34

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The Strategic Report
Delivering our strategy
Delivering our strategy
BT Global Services
We are a global leader in managed networked IT
services. We serve the needs of more than 6,500
large corporate and public sector customers.
We focus on serving the following key industries and regions.
UK
Continental Europe
US and Canada
High-growth regions – Asia PaciƬc, Latin America,
Turkey, the Middle East and Africa
Global consumer
packaged goods
Global health
Global manufacturing
Global pharma chemical
Global telecom markets
Global banking &
Ƭnancial{markets
Global government
Global logistics
Global mining, oil & gas
Global systems integrators
We combine our global reach with local delivery and industry expertise.
65% of our people are based outside the UK, in 60 countries.
Markets and customers
We work for more than 6,500 large corporate and public sector
customers in more than 170 countries worldwide. We serve
• 100% of the FTSE100 companies
• 84% of the Fortune 500 companies
• 86% of Interbrands top 50 annual ranking of the worlds most
valuable brands
• 91% of the worlds top 100 nancial institutions and
• central and local government organisations and other public sector
bodies in 24 countries around the world.
BT Global Services revenue by sector
Year ended 31 March 2014
48%
18%
Financial institutions
23%
UK public sector
6%
Transit
5%
Other global carriers Corporate customers
(excluding nancial
institutions)
Around two thirds of our revenue is generated from corporate
customers. Of these, nancial institutions are our largest customer
segment, generating 18% of our revenue in the year.
The UK public sector generated 23% of our revenue. We are a leading
supplier to the UK Governments Public Services Network (PSN).
owever, we expect to face continued declines in local government
business, reecting the ongoing lower levels of expenditure in this sector
and our focus on only pursuing business that generates economic value.
We also supply a range of services to other telecoms companies.
BT Global Services revenue by region
Year ended 31 March 2014
44%
United Kingdom
32%
Continental Europe
12%
US and Canada
12%
High-growth regions
By region, the UK is our largest in terms of revenue. We serve a wide
range of customers, with the nancial, government and healthcare
segments being particularly signicant. Current Analysis ranked us as the
number one provider in the UK public sector market, as well as a leader in
the UK IP telephony and unied communications market.
Continental Europe is our second largest region, but the slow economic
recovery makes this a tough market as corporate customers continue to
look for ways to make savings. We have a strong presence in this region
with national networks and metropolitan bre rings in most major
markets. We focus on certain key countries such as Belgium, France,
Germany, Italy, the Netherlands and Spain. In Italy, according to the
telecoms regulator, we are the leading operator of those dedicated to
business-to-business services. In Spain, the telecoms regulator ranked
BT as the leading alternative to the incumbent operator in the enterprise
data transmission market.
The US and Canada is an important region for us because of the high
proportion of multinationals that are headquartered there. Our biggest
challenge in the US continues to be ineective regulation of wholesale
access to incumbent operator networks. However, by refreshing our
sales model and launching new products, we hope to grow our share of
this market.
The high-growth regions of Asia Pacic, atin America, Turkey, the
Middle East and Africa are increasingly important for our customers.
We are helping multinationals expand into these areas and supporting
local companies in these regions as they grow internationally. We are
investing in these markets  hiring more people, improving our products
and services and building network and IT infrastructure.
Our markets are competitive across our footprint and we continue to
face pricing pressure. However, there is good growth potential in the
areas where we are investing. For example, Gartnera predicts that cloud
a
The *artner 5eports described herein, Forecast: ,T Services, 2012-2018, 1414 8pdate *artner,
March 2014) and Forecast: ,nformation Security, Worldwide, 2011-2017, 4413 8pdate *artner,
January 2014), represent data, research opinion or viewpoints published, as part of a syndicated
subscription service, by *artner, ,nc. p*artnerq), and are not representations of fact. Each *artner
5eport speaks as of its original publication date and not as of the date of this Annual 5eport) and
the opinions e[pressed in the *artner 5eports are subject to change without notice.