NEC aims to get 70 percent of revenue from services

Stuart Corner
Wednesday, 17 June 2009 06:11

IT Industry - Strategy

NEC Australia is aiming to grow its service revenues from 50 percent to 70 percent of total business earnings in the next five years, following an announcement last month of a restructure to focus on services, unified communications and display solutions.
 

Wataru Takeuchi, managing director of NEC Australia, said the new focus "includes both managed services and system integration, building on vertical expertise and delivering best of breed products and services to suit specific customer requirements." He added: "We see this focus as fundamental to continuing NEC's success."

David Snapp, executive general manager services, NEC Australia, added: "delivering systems integration, managed services, and world leading unified communication solutions will be the foundation on which the success of the business will be based." The company gave no indication of overall growth targets for its Australian revenues, or those of the services business.

NEC says it plans to adopt "more of a vertically aligned approach focusing on key government and enterprise industry sectors including: healthcare, education, transport, financial services, service provider and broadband delivery."
 
To achieve this goal, it says it has moved from state and product focused sales teams that were traditionally siloed, and instead implemented a single national sales organisation that is empowered to sell solutions and products from across the business. The services organisation now represents almost half the NEC Australia workforce, employing 400 staff.

NEC claims that "The move was driven by market conditions and clear feedback from customers asking for a strategic partnership and consultancy approach – not just a product sell – and for NEC to become a simpler organisation to do business with," adding: "The focus on services is reflected globally by NEC Corporation which is working to aggressively grow its services business and gear it for the cloud computing era."

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