ComputerLand’s services business has received a boost after the VAR successfully snatched an O2 managed services contract away from services giant Computacenter.

The value of the O2 contract is expected to exceed £15m over a five year term and joins other new services contracts for ComputerLand, including working with Comet, Focus DIY and British Sugar.

Last week, the VAR posted flat end-of-year results, with turnover falling from £59.5m in 2005 to £59.3m. However, contracted services revenues were up by 10 per cent to £14.2m. The firm said services contracts are expected to drive future growth.

Graham Gilbert, chairman and chief executive of ComputerLand, told CRN: “The O2 deal is a new relationship. We will support its desktop managed services and managing all its Intel-based servers.”

Gilbert said ComputerLand had found the product market difficult during the first half of the year, but claimed the VAR had experienced a much stronger second half.

Kate Hanaghan, analyst at Ovum, said: “Around 18 months ago, ComputerLand announced it was to invest in sales resources for the managed services part of the business. This has now started to pay off.

“O2 adds a significant chunk of revenue to ComputerLand’s managed services pot – taking annual revenues from about £7m to about £10m.”

Computacenter was unavailable for comment.

trevor_treharne@vnu.co.uk