BT Global Services
BT Global Services Announcing a new investment in Latin America
October 2011
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BT … a global leader in networked IT services
Introduction
Jeff Kelly
CEO
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• 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
• 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.
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
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What is our vision for BT Global Services?
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
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
Our vision
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Our customers
Who are our customers?
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
Experience and track record of delivery with a wide range of customers globally
BTGS customers by sector 2010/11
Our customers
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Our customers Our customers
Some examples of customers currently working with BT
Who are our customers?
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Local & devolved
government
Central Government
Defence
Health
Food
Beverages
Personal care
Home care
Tobacco
Manufacturing
Logistics
Pharmaceutical
Retail banks
Global banks
Financial markets
Insurance
Global Banking and Financial Markets
Government and Health
Consumer Packaged Goods
Global Commerce
Our customers Our customers
Who are our customers?
Building our business around industry challenges, with industry-specific solutions
Innovation and new solutions ...
based on strength in the UK
Industry experience
and solutions
Professional Services people and capability
Global assets;
people and
technology
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
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 ...
Our solutions
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
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BT‟s new investment in Latin America An overview
Luis Alvarez
President
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Economic overview
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-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
2007 2008 2009 2010 2011 2012 2013 2014
Latin America
World
Latin America has rapidly recovered from recession and offers exciting opportunities for growth
• Per capita GDP to grow
3.6% in 2011
• Foreign Direct Investment up
40% in 2010
• Exports to grow 27%
in 2011
• Latin American countries will
invest $450 billion in
infrastructure development in
2011-2015
Source: IMF World Economic Outlook Database, April 2011
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-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2007 2008 2009 2010 2011 2012 2013 2014
ICT Spending Outlook Latin America
World
Source: IDC Worldwide Black Book
Query Tool, Version 4, 2010
Market overview
Companies and organisations across the region understand ICT, and are investing faster than the rest of the world
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Market overview
CEOs are focused on realising the benefits of ICT investments, but planning now for a future of innovation and global growth
Opportunities:
• Global and regional expansion
• 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
Long term investment priorities (3 years)
Medium term priorities (1 year)
Source: PwC, 7th South American edition of the 13th Annual Global CEO Survey – 2010
N=194 Latin American CEO‟s interviews
Initiatives to realize cost efficiencies Leadership and talent development Organic growth programs Strategic technology infrastructure or applications R&D and new product innovation Advertising and brand- building Capital investments
84%
71%
68%
69%
65%
51%
45%
Implement a cost- reduction initiative Outsource a business processor function Enter into a new strategic alliance or joint venture “Insource” a previously outsourced business process or function Divest or spun-off majority interest in a business or exit a significant market Complete a cross-border merger or acquisition End an existing strategic alliance or joint venture None of the above Don‟t know/ refused
64%
38%
50%
21%
13%
26%
23%
4%
8%
0% 0%
13 Source: Market Sizing team providing Data from IDC.
Portfolio categories based BT GS inputs
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:
3yr CAGR
7.4%
2010/11
€14bm
2014/15
€18bm
3,9% Network Managed Services (Integration , Consulting, Outsourcing...)
5%
IT ( Cloud PS & DC) 7,2% 42%
Voice/UCC 7% 5%
CRM 7,9% 9%
Converged Services (IPT,LAN,WAN)
8,7% 21%
Mobility 3% 11,9%
Networking 4% 4,3%
Security 8,6% 4%
Market overview
CIO priorities:
• Cloud computing and virtualization
• Professional Services – BT‟s
networked based consulting
• Convergence and unified
communications
• Contact centre and CRM solutions
Current Analysis
“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.”
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“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
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
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Delivering locally 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
• 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
• Cost efficiencies
...including one of the largest satellite footprints in the regions
Current Analysis
“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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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
Delivering locally
BT works with global and „multilatinas‟ customers, as well as the many fast-growing local companies with international ambitions
“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
“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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Media comments
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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
Business needs
“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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• Enhancing BT MPLS infrastructure
and New Global MPLS POPs
• Enhanced Data Centre capabilities
• Additional infrastructure to support
key products and services
• Satellite Communications
(Rio de Janeiro)
• Data centres & Security (Bogota)
• IP Telephony & Contact Centre
(Mexico)
Project focus
Deliv
ery
Port
folio
In response, BT‟s customer-led investment programme is focused in three key areas
1. Infrastructure - Expanded and Strengthened
“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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2. Portfolio - Enhanced and Coordinated
Project focus
In response, BT‟s customer-led investment programme is focused in three key areas
BT Assure
Security that matters
BT Connect
Networks that think
BT One
Communications that unify
BT Contact
Relationships that grow
BT Compute
Services that adapt
“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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2. Portfolio - Enhanced and Coordinated
Project focus
In response, BT‟s customer-led investment programme is focused in three key areas
• 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 Connect
Networks that think
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 • 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
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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)
Project focus
In response, BT‟s customer-led investment programme is focused in three key areas
“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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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
Global Leader
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Thank you!