Telstra fleshes out its plans for KAZ
Telstra fleshes out its plans for KAZ
Oct 22, 2004: Telstra is to combine its Services Solutions division with the recently-acquired KAZ Group to create a new stand-alone business which it claims will be the largest Australian operated ICT organisation with annual revenues approaching $1 billion.
Telstra Business and Government Group managing director, David Thodey, who also chairs the board of KAZ Group, said the new organisation would continue to operate under the KAZ brand. KAZ CEO Peter Kazacos and Telstra Services Solutions managing director Mike Foster will be joint managing directors of the new organisation. Telstra agreed to acquire KAZ in April this year for $333 million.
"By pooling our expertise and scale and sharing best practice across our businesses we will be able to offer broader and enhanced capabilities to our customers and increased opportunities to our employees through a new single customer focussed organisation," said Thodey.
"It meets the commitment Telstra made when we acquired KAZ to create a new ICT services business of significant scale while also retaining the independence and flexibility that has made the KAZ Group so successful in the past."
The initiative builds on each business' core capabilities in IT services, Business Process Outsourcing and telecommunications. Telstra believes the new business will be able to more effectively compete against foreign multinationals, contest new markets and protect the existing customer base.
The new business plans to initially focus on both the corporate and medium business markets. Managed desktop services currently available to corporate customers will be launched to medium sized business customers. KAZ will also utilise its existing data centres and those of Telstra centres to offer customers additional services such as utility computing, bandwidth on demand and hosting and storage in more cities.
Thodey added: "In a consolidating marketplace we believe it makes sense to create a stronger union between KAZ and Telstra while retaining and expanding the skills and experience that has made both companies leaders in their respective marketplaces.
"Telstra is aggressively focused on driving growth in business and government through five initiatives including product and solution innovation, revitalising our sales teams, improving our customer management systems and growing our share of the services and medium business markets."
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