BT Global Services
Announcing a new investment in Latin America
October 2011
BT Global Services
BT … a global leader in networked IT
services
Introduction
Jeff Kelly
CEO
2
Introduction
BT, an introduction
BT is one of the world‟s leading communications services companies, serving the needs of
customers in the UK and in more than 170 countries worldwide
• Providing high quality telecommunications
services since 1846
• Revenues of more than £20 billion in 2010
• 93,000 employees globally
• £1 billion in R&D spend on innovation
• Relationships with 25 universities globally,
including Cambridge, MIT and Tshihhua
3
• The Official Communications
Service Provider for the London
2012 Olympic and Paralympic
Games, We will be carrying every
call, piece of data, image and sports
report for the games.
• A long track record of acting
responsibly and supporting the
communities to whom we deliver
services. In 2011 we maintained
gold sector status in the Dow Jones
Sustainability Index and „Platinum
Plus‟ level in the Business in the
Community Corporate Responsibility
Index.
Our vision
What is our vision for BT Global Services?
The global leader in networked IT services
BT Global Services is a global leader in managed networked IT services, operating globally and
delivering locally to help our customers thrive in a changing world
What makes us different?
• 22,000 people globally supporting enterprise
customers, with one of the largest
professional services capabilities in our
industry
• Bringing together a broad portfolio of
services
• With a track record of delivering for
customers globally in more than 170
countries
• Underpinned with a unique breadth of
scope, reach and capability
• And recognised as market leading for
customer service and innovation
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Our
Our customers
customers
Who are our customers?
Experience and track record of delivery with a wide range of customers globally
A global leader in managed networked IT
services
• Multinational corporations
• Financial institutions
• Public sector organisations
• Major companies in key markets globally
Experience, and a track record
• Around 7000 corporate and public sector
customers across more than 170 countries
• Widely recognised as market leader by industry
watchers
BT Global Services is a leader in
IDC’s Marketscape for Asia Pacific
Next-Generation Telecom Services 2010
5
BTGS customers by sector 2010/11
Our
Our customers
customers
Who are our customers?
Some examples of customers currently working with BT
6
Our
Our customers
customers
Who are our customers?
Building our business around industry challenges, with industry-specific solutions
Consumer Packaged
Goods
Global Banking and
Financial Markets
Government
and Health
Local & devolved
government
Food
Manufacturing
Retail banks
Beverages
Logistics
Global banks
Personal care
Pharmaceutical
Financial markets
Defence
Insurance
Health
Home care
Tobacco
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Global Commerce
Central Government
Our solutions
What makes us different?
Only two or three companies in the world can do what BT does today for customers, and
we‟re continuing to improve ...
Customers want to work with a global managed networked IT services leader,
operating globally and delivering locally to help them thrive in a changing world
Global assets;
people and
technology
Industry
experience
and
solutions
Professional
Services people
and capability
Innovation and
new solutions ...
based on strength
in the UK
We‟re investing globally to make improvements in the areas
our customers tell us are important to them ... Today‟s
announcement is a key part of that
BT‟s new investment in Latin America
An overview
Luis Alvarez
President
9
Economic overview
Latin America has rapidly recovered from recession and
offers exciting opportunities for growth
7.0%
6.0%
Latin
America
5.0%
World
3.0%
• Latin American countries will
invest $450 billion in
infrastructure development in
2011-2015
2.0%
1.0%
0.0%
2007
2008
2009
2010
2011
2012
2013
2014
-1.0%
-2.0%
-3.0%
-4.0%
Source: IMF World Economic Outlook Database, April 2011
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• Foreign Direct Investment up
40% in 2010
• Exports to grow 27%
in 2011
4.0%
10
• Per capita GDP to grow
3.6% in 2011
Market overview
Companies and organisations across
the region understand ICT, and are investing
faster than the rest of the world
ICT Spending Outlook
16.0%
Latin America
14.0%
World
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
2007
-2.0%
-4.0%
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2008
2009
2010
2011
2012
2013
2014
Source: IDC Worldwide Black Book
Query Tool, Version 4, 2010
Market overview
CEOs are focused on realising the benefits of ICT investments,
but planning now for a future of innovation and global growth
Long term investment
priorities (3 years)
Medium term
priorities (1 year)
Initiatives to
realize cost
efficiencies
Implement a costreduction initiative
84%
Leadership
and talent
development
71%
50%
21%
“Insource” a previously
outsourced business
process or function
Strategic
technology
infrastructure
or applications
69%
Divest or spun-off majority
interest in a business or
exit a significant market
13%
26%
Complete a cross-border
merger or acquisition
23%
Advertising
and brandbuilding
51%
End an existing strategic
alliance or joint venture
4%
None of the above
Capital
investments
45%
Don‟t know/ refused
0%
Source: PwC, 7th South American edition of the 13th Annual Global CEO Survey – 2010
N=194 Latin American CEO‟s interviews
12
38%
Enter into a new strategic
alliance or joint venture
68%
65%
• Global and regional expansion
64%
Outsource a business
processor function
Organic
growth
programs
R&D and
new product
innovation
Opportunities:
8%
0%
• Football World Cup 2014 and
Olympic Games 2016 in Brazil
• Better penetration in their
existing markets in LatAm
• Expansion to other countries in
the region often through
strategic alliances or joint
ventures
Market overview
We see a 14 billion euro opportunity for the solutions we
provide for our customers, growing at 7.4% a year
Latin America market, 2010/11 € billion
Total:
CIO priorities:
2010/11
2014/15
3yr CAGR
€14bm
€18bm
7.4%
• Cloud computing and virtualization
• Professional Services – BT‟s
networked based consulting
4%
Security
8,6%
4%
Networking
4,3%
3%
Mobility
11,9%
5%
Voice/UCC
7%
• Convergence and unified
communications
5%
Network Managed Services
3,9%
• Contact centre and CRM solutions
(Integration , Consulting, Outsourcing...)
9%
CRM
7,9%
Current Analysis
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21%
Converged Services
42%
IT ( Cloud PS & DC)
(IPT,LAN,WAN)
Source: Market Sizing team providing Data from IDC.
Portfolio categories based BT GS inputs
8,7%
7,2%
“BT is among the stronger
competitors in Latin America,
and thanks to its past
acquisitions, the company
already has the regional
resources in place to increase
its profile and win clients.”
Delivering locally
BT has substantial operations across the region...
Key facts:
• Operating since 2002.
• World Economic Forum strategic
partner in Cancun (2008), Rio (2009),
Cartagena (2010) and Rio (2011)
• Headquartered in San Paulo, Brazil
• More than 1,000 employees
supporting customers in the region
• Commercial and operational
capabilities
across 22 Latin American markets
• Offering a wide range of networked IT
services including IP infrastructure,
application services, outsourcing
solutions and business transformation
“With BT we have the advantage of a
global solution from a single supplier,
which avoids the complexity and costs
of dealing with multiple service
providers.”
Gilberto Ceresa
CIO, FIAT Group
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Delivering locally
...with a history of successful investment in Latin America...
Operating globally and delivering locally:
• 180 Points of Presence
• +37,000 customer connections
• 7 network operations centres providing monitoring and
proactive diagnosis 24x7
• 3 data centres in Brazil, Argentina and Colombia
• Security operations center in Sao Paulo
Current Analysis
“BT's ambitions in professional
services are backstopped by
several large data centers in
the region that can provide
outsourced/hosted services
and applications for clients.”
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Delivering locally
...including one of the largest
satellite footprints in the regions
• One of the largest broadband satellite coverage
in Latin America
• BT‟s satellite services combined with other
BT network capabilities provide:
• Network services in remote areas
• Integrated Service Support – SLA Management
• High Reliability / Backup Service
• Fast Response Times
Current Analysis
• Cost efficiencies
“BT’s acquisitions give
the company a substantial
network presence
throughout Latin America.”
For Compartel, BT proposed satellite delivery for the bulk of internet
connectivity. "As well as putting in place the infrastructure and
training to help the Colombian people cross the digital divide, BT
provided relevant suggestions to help us develop the evaluation
parameters we use in our SLAs.”
Guillermo Alberto Cruz
Head of the Compartel Programme,
Colombian Ministry of Communications
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Delivering locally
BT works with global and „multilatinas‟ customers, as well as
the many fast-growing local companies with international
ambitions
Working with the worlds leading companies:
• Global multinationals working with BT globally and with presence in
Latin America
• “Multilatinas” working with BT within the region and internationally
• Domestic companies with global ambitions
• Prestigious government institutions contracting locally
“BT is the leading
provider in terms
of the Total
Contract Value of
Managed Network
Services contracts
awarded in Latin
America since the
beginning of 2010”
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“Our most complex project was
implemented in record time, with the entire
installation taking less than one year. And
within six months of implementing the new
system CIAXA was making savings of
around 15% of lottery operating expenses.
We were also providing better service”
Antonio Carlo Barasuol
CAIXA Lotteries
Media comments
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Business needs
Customers are telling BT they need three things
from their global networked IT partner in Latin America…
1.
To provide consistent technology and services globally
2.
To reduce complexity through local knowledge and expertise
3.
To enable business growth and transformation
“Despite the extremely tight deadlines, the
new offices opened with the entire linking
network configured and the new IP
telephony system up and running with 100
per cent user satisfaction. It simply could
not have been better.”
Alfred Gunter
Infrastructure Manager
Unilever Brazil
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Project focus
In response, BT‟s customer-led investment
programme is focused in three key areas
1. Infrastructure - Expanded and Strengthened
• Enhancing BT MPLS infrastructure
and New Global MPLS POPs
• Enhanced Data Centre capabilities
• Data centres & Security (Bogota)
• IP Telephony & Contact Centre
(Mexico)
“BT’s MPLS points of presence will
increase by 20% in the next three years
Luis Alvarez
President
BT Global Services
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Delivery
• Satellite Communications
(Rio de Janeiro)
Portfolio
• Additional infrastructure to support
key products and services
Project focus
In response, BT‟s customer-led investment
programme is focused in three key areas
2. Portfolio - Enhanced and Coordinated
BT Compute
Services that adapt
BT Assure
Security that matters
BT One
Communications that unify
BT Contact
Relationships that grow
BT Connect
Networks that think
“BT will launch over 30 new
products and services in the
region in the next three years”
Neil Sutton
Vice President, Portfolio
BT Global Services
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Project focus
In response, BT‟s customer-led investment
programme is focused in three key areas
2. Portfolio - Enhanced and Coordinated
BT Connect
Networks that think
•
•
•
•
BT Ethernet Connect expanded to 21 cities
New BT IP Connect nodes in Brazil and Mexico
Upgraded Connect Backbone
New BT IP Connect access in Brazil, Colombia and
Mexico
BT One
Communications that
unify
•
•
•
•
BT One Managed Microsoft Lync
BT One Voice in Colombia
BT One Video new bridge in Brazil and Colombia
BT One Cloud Upgraded Connect Backbone
BT Contact
•
Relationships that grow
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BT Cloud Contact and new BT Inbound Contact nodes to
reach consumers across Latam
BT Compute
Services that adapt
•
•
BT On Demand Compute in Brazil, Colombia & Mexico
BT Data Centre Services
BT Assure
Security that matters
•
BT Assure Portfolio launch across the region
In response, BT‟s customer-led investment
programme is focused in three key areas
Project focus
3. People - Ready and Able
• 250 new professionals across Latin America providing
technical and sales support and extending capabilities in
Professional Services
• Centres of excellence in satellite technologies, security,
data centres services, IP telephony and contact centres
• Industry specific expertise in financial services,
consumer packaged goods and global commerce
(manufacturing, logistics and pharmaceuticals)
“BT has been a true business partner in the
Compartel project. It has not only the technical
capacity to meet our stringent connectivity SLAs but
also the flexibility to project manage a wide range of
additional initiatives, from training to technical
support.”
Guillermo Alberto Cruz
Head of the Compartel Programme
Colombian Ministry of Communications
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Global Leader
BT is proud of our history in Latin America, and confident
that our investment will result in great success for us, and for
our customers
• This is a customer led investment plan - driven
by solutions our customers have told us they need to grow
their business successfully in Latin America.
• BT‟s people and professional services combined with an
enhanced portfolio and improved infrastructures, delivers a
market leading strong and consistent offer for our
customers
• By operating globally and delivering locally
– we enable our customers to seize opportunities as they
expand their operations in Latin America and across the
world
BT Global Services
A global leader in
networked IT services
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Thank you!
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