CSG puts all its eggs into Print Services business

CSG puts all its eggs into Print Services business

Sells off Technology Solutions business, overhauls Print Services division.

ICT service provider, CSG, is going full throttle with its Print Services business after selling off its Technology Solutions branch to NEC Australia.

The Technology Solutions provides IT system integration, consulting, managed services, and outsourcing.

The decision comes after a strategic review of the company.

Print Services will be restructured to cut down duplicate functions in a bid to cut costs. This may potentially mean layoffs but CGS said it will maintain service levels to customers.

CSG’s Australian side of Print Services has suffered a notable decline in earnings this year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) for financial year 2012 by the division are projected to be 30 per cent lower than the previous year.

“The restructure of the Print Services division will provide a solid foundation for the long term success of the business,” CSG managing director, Julie-Ann Kerin, said in a statement.

“There is significant potential to improve performance through our restructuring plans and by renewing our focus on sales growth to optimise returns to shareholders.”

A two phase business overhaul will be adopted. First phase is expected to save $13 million per year by 2012. A $4 million per year saving will be delivered in the second phase which will be initiated by June 2013.

Total cost of restructuring is tipped at $7 million.

In the second half of next year, CSG will establish an in-house equipment leasing capability.

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