BT Outsources Ops to AlcaLu

BT Group plc (NYSE: BT; London: BTA) has struck a seven-year outsourcing deal with Alcatel-Lucent (NYSE: ALU) that will result in about 500 staff transferring from the carrier's Global Services division to the vendor. The specific terms and the value of the deal are not known.

The deal, first reported by The Register, is in the "planning phase," according to a BT spokesman. "BT has extended its successful partnership with Alcatel-Lucent focused on the support of BT's global network operations... BT and Alcatel-Lucent have worked together on over 30 contracts including network support and maintenance," stated the carrier in a statement emailed to Light Reading. (See AlcaLu Helps 21CN Migration and Alcatel-Lucent Wins BT Deal.)

AlcaLu also provided the same statement to Light Reading.

The deal is believed to focus on the management of legacy networks that BT's Global Services has acquired as it has built out its local IT support capabilities in a number of international markets during the past few years. (See BT Buys IT Firm, BT Buys Comsat, BT Completes Atlanet Buy, BT Wins Fiat, Buys Atlanet, and M&A Activities Firm Up BT Global.)

The carrier is believed to be looking to offload the operations of ancillary networks while it concentrates on building out new VOIP and MPLS-based carrier Ethernet capabilities as part of its global 21CN next generation network rollout. (See BT Touts 21CN Progress, New Service, BT Plans Further Global Push, and BT Deploys Ericsson VOIP Gear.)

Bigger deal in the offing?
While that outsourcing deal works its way through, speculation has emerged that BT is also considering outsourcing Openreach , the division that is responsible for the operator's access and backhaul networks. (See BT Opens Up Access, Openreach Opens for Business, and BT Preps FTTC Trial.)

According to The Register, a number of outsourcing specialists, including AlcaLu and Electronic Data Systems Corp. (EDS) (NYSE: EDS), are preparing bids for what would be a multi-billion pounds sterling deal that could, potentially, involve about 25,000 staff.

One industry executive noted that such a deal would suit BT as it would get a lot of staff off the carrier's books.

A major outsourcing deal would be a significant coup for AlcaLu's new CEO Ben Verwaayen, who recently joined the vendor after quitting as BT's chief. (See Verwaayen Takes the Helm at AlcaLu and The Diary of Ben V., Age 56.)

— Ray Le Maistre, International News Editor, Light Reading

COMMENTS Add Comment
cw.774 12/5/2012 | 3:29:41 PM
re: BT Outsources Ops to AlcaLu ALU should be interested in more profitable services business that they can truly support.... a no brainer there. But it leaves me wondering...
- why does BT, out-source services? isnpt that their bsuienss?
- is it because they see this particular facility as a maintenance engineering story with future obsolesence as it's only outcome?
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