The IT and network services division of the UK operator previously subcontracted this work to a number of different maintenance suppliers but expects to make some big cost savings by working with a single partner.
The deal is a boost for Lucent-Alcatel’s ambitions in the services sector, and will also help BT Global Services in its cost-reduction program. The company said in September 2006 that it was aiming to for annualized cost reductions of more than 400m pounds ($791m) within three years, including annualized savings of 200m pounds ($395m) from reducing its third-party procurement costs.
The global, eight-year contract covers first-line maintenance, second-, third-, and fourth-line support, and spares management.
Alcatel-Lucent have identified services as a target growth area following the completion of their $11.6bn merger last month. The Alcatel-Lucent Services division has more than 18,000 network experts supporting telecoms operators, enterprises and government agencies, in over 130 countries, with services including maintenance, consulting, network integration, and managed services.
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