BSG dumps division to serve itself right

Systems integrator offloads mail-order business to management buyout team to concentrate efforts on services

London-based systems integrator Business Systems Group (BSG) has sold its off-the-page business in a management buyout in a drive to shift the reseller?s focus from hardware sales to services.

Under the restructure, BSG has sold its mail-order arm to an MBO team for an undisclosed sum, and has merged its services divisions to provide one unified service offering.

BSG joint MD Nick Gerard commented: ?Increasingly our customers are asking BSG for project-based support.?

David Stone, former technical services director at BSG, will take on the role of sales director, a position left vacant by the departure of Roy Howitt to Easynet in May.

But, BSG has made at least 19 job cuts in the wake of the MBO. One source estimated that the actual number was 25.

Among the staff who have been confirmed as leaving are Geoff Broadhurst, financial controller, and quality manager Maurice Sutton. The majority of job losses are expected to come from the sales and back office divisions.

Stone insisted the reseller was undertaking a major recruitment drive, and planned to recruit about 20 additional technical staff.

?The reseller arm of BSG?s business constitutes 80 per cent of the company?s turnover. I anticipate a steady increase in the percentage of turnover accounted for by services over the next 12 months,? he said.

BSG will now offer a range of services, such as systems integration, applications development, networking, cabling and infrastructure, support and education.

One channel source said: ?The services division is doing well, and the product division was not doing so well. The infrastructure is such that BSG couldn?t support product shifting, and was losing out to the likes of Computacenter.?