Outsourcing and managed services were a high growth sector that BT wanted to enter to improve margins and provide services that bound customers closer. BT had a number of business units and product lines with interests in Communication Facilities Management (CFM), and needed a plan to pull these together to address the opportunities and challenges presented.
David interviewed key players in marketing, product management, national account management and BT’s outsourcing unit. He pulled together common service and proposition definitions, market analysis, revenue and cost projections, to build a detailed business plan for expenditures of £15m capital and £200m current. The plan highlighted some of the key risks and challenges. A key risk was that BT needed absorb new staff from contracts while managing TUPE risks at a time when it was downsizing. A major challenge was the need to drive profit improvement by taking on highly ‘custom’ operating infrastructures and migrating them to more standardised service delivery platforms.
The business case was accepted and investments made for BT’s successful entry into an important market space.