BT to leverage on Sun Micro in growing RP services business
By Lawrence Casiraya
INQUIRER.net
First Posted 09:30:00 07/04/2008
HONG KONG -- BT is looking to leverage on its stake in Sun Microsystems Philippines in growing its network and IT services business in the Philippines, the company's top Asia Pacific executive said.
BT acquired Singapore-based IT services provider Frontline Technologies in a deal valued at 202 million Singaporean dollars. By acquiring Frontline, the UK-based firm is hoping to strengthen its services in the region.
Prior to the acquisition, Frontline owned a 60-percent share in the local Sun office, a joint venture with the US-based tech giant.
BT, meanwhile, employs a ten-member team of executives (which includes former HP country manager Nilo Cruz) based in the Philippines although largely servicing regional accounts. The team has since been relocated at Sun's local office in Makati City.
Allen Ma, BT Asia Pacific president, said BT is now looking for ways by which to bundle some of its network services with Sun's local distributor business.
Aside from domestic accounts, BT is also eyeing global customers that have operations in the Philippines, thus creating opportunities for a locally based service provider.
"Before, when we get a network services customer contract in the Philippines, we would have to pass it on to a local system integrator. With our joint venture (with Sun), we don't need to look for a third-party service provider," Ma said during an interview session at BT's Asia Pacific Media Day here.
Ma cited potential business in the call center industry although he is not seeing much opportunity in other sectors in the Philippines.
Unlike emerging markets like Vietnam or China, he said investments in sectors like manufacturing or financial services are not as large-scale.
"Clearly, the call center business is booming but there must be something else," Ma said.
"I'd like to see indicators in other industries that BT can invest into and Sun can help us see further opportunities. What happened in India, I don't see that being repeated yet in the Philippines."
As it moves into system integration and other IT services, BT will be competing with incumbent Philippine telecom providers like PLDT that have been offering such services.
"But, first before BT can compete (with local players), we would have to clearly identify where the customers are," Ma said.
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