SingTel's Optus flexes regional muscles

Ovum analyst
29 Jan 2014

SingTel's Australian subsidiary Optus has signed a A$30 million ($26.3 million) managed services, M2M, and enterprise mobility contract with UGL to support its expansion in Asia-Pacific.

UGL’s decision to award this contract to SingTel Optus has validated the operator’s strategy and stated goals of extending its reach based on its success with Australian-based enterprises. It is a reliable indicator of the international opportunities that beckon for many ICT service providers in Australia.

It also serves as a reminder for Australian enterprises that “going for growth” in the region must be accompanied by a robust and agile ICT infrastructure. This makes the selection of ICT service provider critical, and a detailed due-diligence process is needed. So how can ICT service providers take advantage of Australian enterprises that are making a strong regional or even global push? And how should Australian enterprises leverage ICT and their service provider to give themselves a competitive advantage in the region?

Regional presence and ICT capabilities should support growth

Building an ICT infrastructure to support regional expansion is potentially expensive and could be beset with challenges. Cost optimization and delivering business process transformation should ultimately be the twin goals of most enterprises. Selecting a service provider that can support these goals is one of the most critical decisions an enterprise can make.

Fortunately, in Australia, the presence of many top ICT service providers (both telcos and systems integrators) has made this a competitive market. Enterprises should ensure that service providers have a strong local presence in countries that they are expanding to, so that levels of service are consistent across the region.

Service providers must also have broad and deep ICT capabilities so that any expansion or additional technology investment can also be handled and integrated neatly by the same provider. Finally, flexible SLAs, milestone reviews, and crisis management escalation should be built into the contract to allow for unforeseen changes and events during the lifecycle of the deal.

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