DiData claims strategy eases margin pressure
Services giant believes single European region will offer wide-reaching benefits to the firm
IT services giant Dimension Data (DiData) has claimed its move to consolidate its UK and continental European business regions is not an exercise in cost cutting.
However, Russell Bolan, chief executive of DiData Europe, did admit that the move would enable it to reduce margin pressure.
“This will leverage our pan-European footplate and ensure we are able to more readily meet customer needs. It will also enable us to build vertical teams around clients and to reduce margin pressure,” he said.
The move will create a single European region for the firm, now known as Dimension Data Europe. The company claimed that the new structure would offer advantages.
“Operations with partners will improve as they will have greater transparency and can leverage other pan-European benefits, such as a faster decision process.
“Our strategy is around profitable growth, primarily through organic means, but when we do acquire, it is to take advantage of intellectual property,” Bolan added.
In 2000, DiData acquired US-based network services provider TimeBridge Technologies for $135m, as well as Australian integrator SecureData Group last year.
Kurt Lyall, analyst at First Partner, said: “The amalgamation will be to drive out unnecessary overheads and to align DiData’s business with customers that have a similar pan-European footplate.
“There is softness in this market, and businesses are trying to recoup lost margins. There is also a lot more competition in it nowadays.”
Seperately, DiData signed an agreement with Avaya last week. DiData claimed this would help it grow in the contact centre and IP telephony sectors and provide the integration skills for telephony applications for enhanced services.
Buddie Ceronie, vice-president of Avaya UK, Ireland and South Africa, said: “By partnering with Dimension Data we can deliver these skills and systems to customers in the UK.”
Last year DiData also announced plans to grow business through a combination of “blue collar” consulting and deals with niche technology players.