BT targets mid-sized companies with acquisition

Telecoms giant buys UK IT services company Basilica Computing

BT has acquired UK IT services provider Basilica Computing

BT has acquired UK IT services firm Basilica Computing, which provides services to small and medium-sized businesses.

Basilica, which generated sales last year of £76m, will strengthen BT’s move into the mid-market, said Ovum analyst Angel Dobardziev.

‘When it comes to large multinational outsourcing deals, BT will struggle to move far beyond its network infrastructure and service heritage,’ he said.

‘But in the mid-market, which is largely untouched by large IT services players, BT sees many opportunities in providing converged IT services.’

But the move will not be easy, as providing IT services to mid-market companies at a profit remains elusive, said Dobardziev,

‘The set-up of large IT service providers remains unsuited to low-spending, fickle customers, which often prefer to deal with an organisation of similar size,’ he said.

The acquisition will help BT improve its proposition to customers and underpin long-term growth in the unified communications sector, said BT Business managing director Bill Murphy.