Computacenter bolstered by deals

Reseller's professional and managed services business remains strong

Computacenter has signed two multimillion-pound outsourcing deals, backing up its latest claims that its professional and managed services business remains strong despite ongoing weakness in IT capital expenditure.

The corporate value-add reseller will report its interim results, for the six months ended 30 June, on 2 September. But in a pre-close update, chief executive Mike Norris said: "Overall, the group has delivered a good first-half performance."

Norris said weak IT capital expenditure had reduced product sales during the period. "However, this has been offset by the strength of our professional and managed services activities," he added.

But he warned: "After a modest pick-up in the market in the first quarter, trading has fallen back to more subdued levels. We anticipate little change for the remainder of the year."

The firm also received a boost by signing two huge outsourcing deals in the financial sector. HBOS and Abbey National have both announced desktop management deals with Computacenter in the past fortnight.

The three-year HBOS deal, for an undisclosed sum, involves managing 35,000 desktops at the head offices of HBOS in Edinburgh and West Yorkshire and several call centres, as well as its web-based banking services division.

This was followed by the company's appointment to manage Abbey National's entire desktop infrastructure in a five-year deal worth £70m. The bank has 28,000 workers in the UK.

Andy Brown, analyst at IDC, said Computacenter has adapted its business well to get into growth areas. "Its results are very positive in light of the current shape of the desktop market, which is slow," he said.

"The channel can make money out of desktop outsourcing because all businesses, regardless of size, are trying to cut costs and the channel is well positioned to provide it."