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Revenue rise justifies BCA's services foray

Revenue rise justifies BCA's services foray

Business Computers of Australia (BCA) has considered market trends and is attempting to move away from a reliance on the supply of PCs and networks and into an outsourcing service role for Australia's Top 500 organisations.

The Melbourne-based systems integrator last week reported booming revenues of $162.2 million, up 29 per cent over last year. However, it has taken about three years and an injection of 40 new national service staff to deliver such a return.

BCA's national marketing manager, Louis Vellios, attributed this success to the organisation's growing emphasis on professional services and maintenance contracts with key customers such as Coles/Myer and BHP.

And by partnering with vendors such as IBM, Compaq and Cisco, BCA's managing director Andrew Carter is hoping to successfully complete the transition into outsourcing non-critical applications for BCA's larger clients.

Carter believes that this will be achieved despite a "saturated marketplace" of service providers. He claims the asset that will differentiate BCA from its competitors is comprehensive customer support systems that cover both pre and post sales.

BCA is also contemplating a move into what Vellios coined "medium enterprise" in order to establish both a vertical and horizontal market share. He said BCA's focus in this market will no longer just be volume gener-ated sales and bulk integration contracts.

Declining margins

Vellios asserted that all hardware suppliers are vulnerable to declining margins and need to find an alternate focus and unique selling point in order to thrive, and in some cases just survive. But he is not consigning product supply to oblivion just yet.

BCA's tier-one products are a valuable aspect of the business, he said, and have provided an excellent backbone to contemporary business operations, in terms of product knowledge, the formulation of industry relations, and capital to initially fund the entire venture into total systems provision.


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