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BT Global is a division of
United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...
telecommunications company
BT Group BT Group plc ( trading as BT and formerly British Telecom) is a British multinational telecommunications holding company headquartered in London, England. It has operations in around 180 countries and is the largest provider of fixed-line, bro ...
that provides global security, cloud and networking services to
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worldwide, with operations in 180 countries. It was established in July 2000 as BT Ignite.


History


Renaming

BT Group began operating as a private corporation after the
Telecommunications Act 1984 The Telecommunications Act 1984 (c 12) is an Act of the Parliament of the United Kingdom. The rules for the industry are now contained in the Communications Act 2003. Provisions The provisions of the act included the following: * Privatising ...
. During the 1990s, between the loosening of national telecom monopolies and the current (largely) liberalised market, BT Group entered into a number of alliances in order to serve its mainly, then, UK-based multi-national customers. From the 90's through the early 2000s, BT Group, then known as British Telecom, struggled. The company failed to secure a strong partner, struggled to expand internationally, and had significant debt. In 2002, the attempt at an alliance (
Concert A concert is a live music performance in front of an audience. The performance may be by a single musician, sometimes then called a recital, or by a musical ensemble, such as an orchestra, choir, or band. Concerts are held in a wide variet ...
2 with AT&T) was disbanded. Thereafter, the company brought together a number of joint ventures, partly owned assets and wholly owned subsidiaries into the single entity that exists today. On April 1, 2002, BT’s contracts with former Concert customers were transferred to BT Global and BT Retail. BT Ignite was renamed BT Global in April 2003. By late 2003, around 50% of BT Global ’ about 5,000 staff were employed outside the UK.


Acquisitions

Between 2002 and 2009, the Global division made a string of acquisitions to expand its global footprint and broaden its business offer to customers. Most notable are Radianz, the then network arm of
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in 2005; the global network operator Infonet in 2005; managed security market leader Counterpane in 2006; US IT consultancy company International Network Services Corp. (INS) in 2007; and Asian systems integrator Frontline in 2008. In 2016, Global signed an agreement to acquire IP Trade S.A., a provider of unified communications and collaboration solutions for trading floor environments and command-and-control dispatch centres.


Customers

In 2005, Global won a multi-year worldwide outsourcing contract to provide communication and IT services to FIAT in a deal worth €450 million (£303 million) over five years across 40 countries. BT also acquired Fiat's subsidiary, Atlanet for €80 million which provides domestic telecoms services to Fiat and other business customers across Italy. In 2006, Atlanet was merged with Albacom to form
BT Italia BT in Italy is represented by BT Italia S.p.A., which is the second largest business telecommunication operator in the Italian market, controlling an 11% share. History BT Italia is the result of a series of industrial ventures and mergers that ...
. In 2006, Global agreed a £100 million seven-year worldwide outsourcing contract to provide communication and IT services to PepsiCo, across their 900 locations in more than 60 countries as well as upgrading their network infrastructure. In 2008, Global agreed a $650 million (£332 million) five-year worldwide outsourcing contract to provide communication and IT services to
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, across more than 1,100 locations in more than 80 countries. In January 2016, Global agreed a £100 million seven-year contract with the
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...
to provide its broadcast network from April 2017, when it finishes its remaining contract with
Vodafone UK Vodafone UK is a British telecommunications services provider, and a part of Vodafone Group Plc, the world's second-largest mobile phone company. Vodafone is the third-largest mobile network operator in the United Kingdom, with 16.9 million su ...
via
Atos Atos is a European multinational information technology (IT) service and consulting company headquartered in Bezons, France and offices worldwide. It specialises in hi-tech transactional services, unified communications, cloud, big data and ...
. The deal will see the BBC move to a new, state-of-the-art network that will link all BBC UK sites, including 21 broadcasting centres and local radio stations, as well as connecting to the main overseas bureaux and partners for playout of the BBC’s TV channels. It will carry all video, audio and data traffic, as well as fixed-line telephony, ISDN and broadband services. On 10 February 2016, Global announced it has been awarded a five-year contract worth more than £9 million, to deliver computer and data centre services to
Bromley London Borough Council Bromley London Borough Council is the local authority for the London Borough of Bromley in Greater London, England. It is one of 32 London borough councils. History There have previously been a number of local authorities responsible for the Bro ...
. The contract was won by BT as part of a pan-London framework agreement for information and communications technology (ICT) services set up by
Westminster City Council Westminster City Council is the local authority for the City of Westminster in Greater London, England. The city is divided into 20 wards, each electing three councillors. The council is currently composed of 31 Labour Party members and 23 Cons ...
, the Royal Borough of Kensington and Chelsea and
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councils. Global also manages the global networked IT estates for Komatsu and
Randstad Holding Randstad NV, commonly known as Randstad and stylized as randstad, is a Dutch multinational human resource consulting firm headquartered in Diemen, Netherlands. It was founded in the Netherlands in 1960 by Frits Goldschmeding and operates in ...
. In January 2019 BT became the first international group to receive two national telecoms licences from China’s Ministry of Industry and Information Technology which will enable it to sell services direct to Chinese customers.


Finances

At the start of 2009, Global took a £340m
writedown A write-off is a reduction of the recognized value of something. In accounting, this is a recognition of the reduced or zero value of an asset. In income tax statements, this is a reduction of taxable income, as a recognition of certain expenses ...
due to poor "cost controls" shortly after the resignation of its CEO François Barrault. Later in the year the company reported losses of £2.1bn, despite sales of £8.8 billion. Global then underwent a transformation programme, including cost saving initiatives, leading to substantial increases of EBITDA,
operating profit In accounting and finance, earnings before interest and taxes (EBIT) is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating) except interest expenses and income tax expenses. Operating income and ope ...
s and operating cash flow during its 2009–2010 financial year. In May 2010, BT announced an investment plan to increase its capabilities in the Asia-Pacific region. By the end of its 2010–2011 financial year, Global had increased orders with customers by 10% year on year, improved profitability, and became operating cash flow positive a year ahead of schedule. Total income for Global in 2016-7 was more than £5bn. In 2017-2018 financial year Global reported a £5bn revenue, £434m EBITDA and £10m operating profit.


Management

From 2004 until 2008 François Barrault was CEO of BT Global and president of BT International, before leaving the company after poor financial performance results. He was replaced by Hanif Lalani. Jeff Kelly was appointed CEO in early 2010. Luis Alvarez was appointed CEO, in October 2012. Prior, Alvarez had been president of BT’s European, Middle East, Africa and Latin American operations.
Bas Burger Bas Burger (born 1970) is a Dutch business executive (French) known for his work in the international telecom industry. (Spanish) (Dutch) Currently CEO, Global Services, BT, he is a contributor to the World Economic Forum and is on the Committ ...
was appointed CEO on 1 June 2017. Martin Smith is Chief Finance Officer, Kevin Taylor is president of BT in Asia, Middle East and Africa, Chet Patel is Chief Transformation Officer and president of BT in Continental Europe, Ashish Gupta is president of BT in the UK and Global Banking and Financial Services, and Jennifer Artley is president of BT in the Americas. BT Global have a business management system run on a Qualsys quality management system.


Future

On 16 December 2022, BT announced that Global would be merged with
Enterprise Enterprise (or the archaic spelling Enterprize) may refer to: Business and economics Brands and enterprises * Enterprise GP Holdings, an energy holding company * Enterprise plc, a UK civil engineering and maintenance company * Enterpris ...
to form a new division,
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, in an effort to save £100 million each year by the end of the 2025 financial year. The new division will be led by
Bas Burger Bas Burger (born 1970) is a Dutch business executive (French) known for his work in the international telecom industry. (Spanish) (Dutch) Currently CEO, Global Services, BT, he is a contributor to the World Economic Forum and is on the Committ ...
.


References


External links

* {{Major information technology consulting and outsourcing companies BT Group