Major restructure plans within SingTel will have an impact on Optus subsidiary, Alphawest.
SingTel, Optus' parent company, announced it will reorganise the business on April 1, splitting the company into distinct consumer, digital services, and ICT groups.
Optus CEO, Paul O’Sullivan will be heading up Group Consumer while Allen Lew will take charge of Digital L!fe and Group ICT.
ICT service provider, Alphawest, falls into the latter category. Optus acquired Alphawest in 2005
SingTel's goal is to create a one-stop ICT services shop for enterprise customers, which is a trend it is seeing globally.
“The ability for us to pull our enterprise customers and manage them as a single entity with multiple geographies starts to be very important, especially of how we position ourselves in front of these companies,” Lew said.
He wants to move SingTel beyond just a data and carriage services provider.
One of the company’s strategies for becoming a circumspect provider of managed services is to combine the knowledge and skills of its global ICT operations. This involves Alphawest working more closely with related SingTel operations in Singapore.
“There’s an opportunity for us to take the skills we have in Australia with Alphawest and that has been built into Optus Business with what we have in regions with MCS (managed communications services) to create a single delivery and more targeted sales organisation that can focus on the individual components of ICT,” Lew said.
Alphawest is already well-equipped to help SingTel’s quest to be a global ICT player, O’Sullivan said.
“It’s a capability we invested in when we acquired the company to allow us to offer network-centric managed services and be able to do far more sophisticated things for our customers,” he said.
These investments are mirrored on the Singapore side of the business which include IT service provider, NCS.
O’Sullivan expects SingTel’s Australia and Singapore ICT operations to work closer together, transferring ideas and technology between them.
The Optus CEO was coy about how this “synergy” will impact the current structure of Alphawest, including headcount.
“Moving forward, there will be two impacts I will expect to see: If there are new capabilities we bring into Australia, they will require some extra staffing and resources,” O’Sullivan said. “But likewise, if there are things we can leverage from the region then, yes, we may be able to be more efficient and to operate with fewer resources [at Alphawest].”
Alphawest acting CEO, Ian Smith, was contacted by ARN but did not respond at the time of publication.