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Gen-i wants 20 percent local market share

Gen-i wants 20 percent local market share

Gen-i has its sights set on boosting market share to 20 percent in New Zealand, while also aiming to beef up its position across the Tasman.

General manager Chris Quin told a Sydney meeting of Telecom shareholders and analysts that Gen-i’s growth aspirations come amid a very fragmented IT services market.

“We’re number one in New Zealand at 13 percent market share, which shows just how fragmented it is, although there’s a prediction it will become more consolidated.”

Quin told the meeting he was proud of Gen-i’s achievements since its merger with Telecom and Computerland four years ago, which include double-digit revenue growth in services each year since, and big wins with clients such as the Ministry of Social Development, ACC and the Norfolk Group.

However, he says the Australasian integrator needs to continue to be preferred by clients, which means investing in staff. He says investment in staff in the last couple of years has contributed to an 85 percent average win rate on project bids between last July and February 2008.

“The focus is still on revenue and margin growth, but also on client satisfaction and preference as we head into a new world of competition,” he says.

“Our business is about client relationships and the value of people we put in front of clients. The people interaction has to be one that people enjoy. It has to be about our clients' problems, not our technology.”

Gen-i’s goal in the long-term is five percent Australian market share, up from its current share of less than one percent. Quin says it has a strong opportunity to target increased business in desktop infrastructure management in the mid-market.

“Gen-i in Australia is a profitable business, but not as profitable as it could be. We will make modest and focused investment.”

Growth across the Tasman could come from buying or building capability, Quin says.

It also wants to win back parts of contract business previously held with the Commonwealth Bank of Australia. Some parts have already been re-gained with a term lasting until 2013, but others will be back on offer in 2009.

IT services contributed $495 million of Gen-i’s $1.49 billion revenue for the financial year to 2007, and Quin says it was the fastest growing area of the business. The company expects services to grow at 6.5 percent compounded annually between now and 2012.

It now aims to increase services earnings to 50 percent locally.


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