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Ericsson sees bright future in professional services
Magnus Mandersson may only have a day under his belt as the new head of Ericsson's Global Services unit, but he's confident that professional services will continue to be a growth engine for the company.
While it won't reveal total growth of the unit for 2009 until Jan. 25, in 2008 Ericsson's generated $10 billion in services revenues: $7 billion from professional services and $3 billion from network build out services. Boosted by major professional services wins such as its contract to run Sprint's wireline and wireless networks, Ericsson's services segment grew 20 percent in the first nine months of 2009.
Of course, Ericsson is not alone in its professional services desires. It faces two sets of competitors that are fighting for a piece of professional services pie: traditional telecom vendors (Alcatel-Lucent, Huawei and Nokia Siemens Networks) and IT service companies (IBM Global Services and Hewlett Packard).
To further the division's growth, Mandersson said he'll focus on looking at possible acquisitions of other smaller professional services shops. Proof of that mission came last week when Ericsson reached a deal to acquire Italian professional services company Pride Spa.
For more:
- LightReading Europe has this analysis
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Comments
Posted by Anonymous | January 20, 2010 - 3:45pm
Seems as if the dark horse, Alcatel-lucent, is the clear winner in this race...their aliance with HP solidifies the package. AlcaLu offers the total package with class and integrity. They remind me of Apple back in '01/'02...a forgotten company that rose from the ashes to greatness once again as a paradigm shift unfolded in a warm and fuzzy tech environment.
Posted by Anonymous | January 20, 2010 - 1:00am
What's funny about this article...Ericsson purchased Nortel Networks which had a pretty good professional services business; however, right after the CDMA business purchase, CDMA operations/installation leadership decided professional services was not going to be needed - so they laid off pretty much anyone who had anything to do with professional services...what's even funnier, they laid these groups off right after Ericsson won the auction - incredibly bone headed decision. I would say they probably did this in an effort to look better than they really were....Makes me wonder if the Ericsson buyers even knew these layoffs were happening...But I guess that's why Nortel is no more...hopefully, Ericsson will be much smarter about who they select to mind their shop from Nortel....pretty much CDMA operations/installation director and above - worthless, rat bastards, that are of low moral and low integrity value....funny. Can't trust them..no,no,no,no...
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