BT is a large global telecommunications company with over £21 billion in annual revenue. It has over 111,000 employees worldwide serving over 8,500 major multi-site customers. BT Global Services provides networked IT solutions to customers across various regions, including the UK, North America, Asia Pacific, the Middle East, and other parts of Europe and Latin America. The document discusses trends in the global economy and ICT industry in 2009, including a focus on cost reduction, operational efficiency, unified communications, and compliance management.

1. BT’s market v i e w Benedicte Hennebo Head of Marketing BT Global Services, Middle East and North Africa HULT Intl, 23 rd July 2009

2. £21,4bn Revenue £2.9bn Profit 111,858 people Sir Michael Rake BT Group Chairman BT Global Services Hanif Lalani CEO 41% BT Wholesale Sally Davis CEO 16% BT Retail Gavin Patterson CEO 38% 5% Openreach Steve Robertson CEO BT Group Ian Livingstone BT Group CEO Group Operations & Strategy BT Group Al-noor Ramji CEO & Group CIO BT Design Matt Bross Group CTO BT Innovate Roel Louwhoff CEO BT Operate

3. BT Global Services BTGS serves 8,500 major multi-site customers worldwide UK Professional Services experts: 3,000 UK 12,600 employees 2,500 major customers 9,000 connections North America 2,600 employees 3,500 customers 8,000 connections Asia Pac Professional Services experts: 2,000 Asia Pac 4,750 employees 650 customers 11,000 connections EMEA Professional Services experts: 3,000 US Professional Services experts: 2,000 MEA 250 employees 600 customers 3,000 connections Western Europe 8,300 employees 6,700 major customers 46,000 connections CEE/Russia 400 employees 350 customers 3,000 connections Latin America 1,000 employees 500 major customers 2,000 connections

4. If a picture is worth 1000 words…

5. Recession?

8. The shifting power equation -3.7% GDP estimated growth 2009 4.8% GDP estimated growth 2009 $1.4bn raised in IPOs last quarter 21 million page views per month 3.8 billion page views per month 6.7 million eBay listings added per day Sovereign wealth funds $3.22 trillion 60 days+ to build a datacentre West East Public listing Sovereign Wealth Funds Corporate Community Infrastructure Customer

9. Crisis: unleash your innovation 1948/9 1 st Post war Recession Cellphone, Transistor 1958 GDP depression Lazer 70’s Graphic User Interface Ethernet, TCP/IP, DNA recombination 80’s PC, Walkman,… .com bubble Google, YouTube… Innovation Don’t waste the crisis

11. Sector view Finance Impact of the crisis on companies: survival mode cost cutting operational efficiency low impact benefiting Oil & Gas Retail Government Utilities Packaged goods Manufacturing/ Automotive Pharmaceutical

15. 21 CN global networked services platform Single BT Global Contract Converged Service Management £857m Open Innovation

16. 21 CN global networked services solutions iVPN, SOI Platform, Virtualisation, SaaS & Re-usable Capabilities

18. A consistent and proven methodology Transition Transformation Innovation

19. Existing barriers to effective communication Impacting the bottom line Sources: Sage Research At least Monthly 35% … results in lost time, delays and missed deadlines Daily 52% … have to use multiple methods of reaching coworkers… Up to 6 types of devices Communication devices and apps proliferating… 47% travel at least once per month employees increasingly mobile…

20. Communication today and tomorrow

21. What is Unified Communications? Unified communications link communication and collaboration technologies to improve and accelerate business processes

23. Cherish your customer: “Fragvergence” Getting things right presents opportunities ICT Spend is focused on customer-centric activities Sources: 1 Datamonitor 2 & 3 Contact Babel 6 4 Dimension data Just 36% of organisations have a single view of the customer across their multiple channels/systems 4 Multiple systems Only 40% of contact centres advisors have previous experience 3 Different levels of agent skills & knowledge 41% of organisations don’t record channel preference 1 Multiple Communication Channels Multiple sites 56% of contact centres have more than one operational site Contact centre Customer experience

25. Sustainability is a key road to profitable growth While the sector (ICT) plans to significantly step up the energy efficiency of its products and services, ICT’s largest influence will be by enabling energy efficiencies in other sectors, an opportunity that could deliver carbon savings five times larger than the total emissions from the entire ICT sector in 2020 Smart 2020: Enabling the low carbon economy in the information age Enterprise green IT services spending will grow by 60% annually to reach $4.8 billion in 2013. BT is able to deliver sustainable business through its Networked IT portfolio

26. From Web 1.0 to Web 2.0 to Web 3.0 Source: Social Media Bootcamp by Akanksha Goel

27. The importance of new media Iranian elections Corporate usage of social media Source: Technorati

28. The new marketing rules Source: Social Media Bootcamp by Akanksha Goel

31. M o r e I n f o ? www.biggerthinking.com [email_address]

32. T h a n k Y o u

33. Appendixes

34. Total size of the business market for ICT in 2009 North America $809.3bn YOY Growth in 2010 = 1.2% CAGR 2007-12 = 2.5% North America is the largest market but it experiencing the second lowest growth due to economic pressure Latin America $115.4bn YOY Growth in 2010 = 4.1% CAGR 2007-12 = 6.1% Mexico is the largest market in terms of size in Latin America followed by Argentina Western Europe $597.7bn YOY Growth in 2010 = 0.2% CAGR 2007-12 = 2.1% The UK is by far the largest market but economic pressure has meant that WE has the lowest YoY growth and CAGR Asia Pacific $485bn YOY Growth in 2010 = 3.1% CAGR 2007-12 = 4.5% Japan is by far the largest market in the Asia-Pac Region followed by Korea which is less than half the size of Japan Middle East & Africa $81bn YOY Growth in 2010 = 3.4% CAGR 2007-12 = 6.7% Turkey represents the largest market in this region followed by the UAE Russia, Central & Eastern Europe $69.3bn YOY Growth in 2010 2.2% CAGR 2007-12 = 7.4% The smallest regional market but RC&EE has the largest CAGR The worldwide ICT market in 2009 in worth US$2.2tr and is expected to grow YoY (2010) by 1.6% with a 2007-12 CAGR of 3.3% The severity of global economic pressures are impacting on the regions at different levels with North America and Western Europe seeing the brunt of the economic downturn with many countries in recession. Source: BTGS Market Sizing Team May 2009 (figures rounded to the nearest 0.1 of a billion/percentage point) NB: Market size is indicative of the total business market Market Data

37. Trends driving the ICT demand (1/3) Source: IMF, Reuters; industry reporting Market Trends Improve Operational Efficiency IP/IT, Optimise Network Centric Security For the first time in decades, growth in world trade will lag behind growth in world GDP. This implies that the share of trade in world GDP will decline - a poignant illustration of ‘stalled globalisation’. Globalisation is a major driver of ICT needs, especially connectivity and integration, in the enterprise world; stagnation in the activity is likely to inject passivity in the market Stalled Global-isation Key Trends Implications Positive/ Negative Potential Head -line Props Severe Global Economic Recession Under the scenario, ICT projects with longer pay-back period are likely to be deferred in most industries, impacting growth rate of the overall ICT market negatively. ICT trend in emerging countries is likely to face significant downward pressure. The abrupt change in scenario will negatively impact on ICT opportunities. Improve Operational Efficiency IP/IT, Make Contact Centres Efficient Focus on Operational Efficiency and Cost Reduction Technology leaders are faced with the challenge of trimming the fat out of their budgets. Gartner’s CIO survey on their top10 business priorities for 2009, 'Business Process Improvement' and 'Reducing Enterprise Cost' ranked 1 st and 2 nd respectively. ICT is seen as a major tool for improving business processes and operational efficiency; the focus is most likely to contribute positively to the ICT market revenues Improve Operational Efficiency IP/IT Downtrend in M&A Activity So far this year, the merger volumes in Americas, Europe, Asia Pacific and Japan have declined by 30%, 47%, 34% and 11% respectively. M&A is a major driver of ICT needs, especially connectivity and integration needs; the downtrend in the activity comes as a major offsetting factor from the global ICT opportunity standpoint. Improve Operational Efficiency IP/IT, Unify Comms

38. Trends driving the ICT demand(2/3) Source: Gartner; Forrester; industry reporting Market Trends Unify Comms, Improve Operational Efficiency IT and Optimise Network Centric Security Process and technology strategies in 2009 will focus on risk standardisation, increasing oversight, performance and risk management coordination, evolving expectations of corporate responsibility and big shifts in governance, risk, and compliance (GRC) technologies. Increasing focus on compliance management should impact the overall ICT market positively. Increased Focus on Compliance Management Unify Comms, and Improve Operational Efficiency IP/IT Through 2010, the adoption of social computing software in IT operations will increase by 100%. Social computing comes as a major driver for connectivity and integration needs in the enterprise world. The growth in its trend should contribute to increase the overall ICT market revenues markedly. Increasing Adoption of Social Computing Improve Operational Efficiency IP/IT and Optimise Network Centric Security Virtualisation remains a high priority for CIOs as they look to increase the capacity and reduce the cost. Benefits of virtualisation are being increasingly recognised in the enterprise world. The market is expected to experience good growth in the next few years, representing an opportunity enhancing trend for the overall ICT market. Virtualising the Enterprise Key Trends Implications Positive/ Negative Potential Headline Propositions Increasing Interest in Green IT More often than not disguised as cost reduction in the current economic climate. Enterprise green IT services spending will grow by 60% annually to reach $4.8 billion in 2013. Green IT is a driver of enterprise ICT needs, acceleration in its demand is going to strengthen it further. Unify Comms, and Improve Operational Efficiency IP/IT

39. Trends driving the ICT demand (3/3) Source: Gartner; Forrester, Yankee; industry reporting Market Trends Unify Comms and Improve Operational Efficiency IP The tough economy is forcing companies to restrict travel while keeping distributed teams in touch. Changes in the composition of the workforce mean enterprises must capture the knowledge of retiring Baby Boomers and provide Gen Yers with their favored tools to work efficiently. These trends have created opportunities for collaboration vendors within global and multi-national enterprises. Collaboration Vibrant Unify Comms and Improve Operational Efficiency IP During the next few years, cloud computing will advance further to underpin Anywhere IT as four distinct “clouds”—the enterprise cloud, software as a service (SaaS), platform as a service (PaaS) and infrastructure as a service (IaaS). Growth in “Anywhere IT” market comes as a major positive trend from the ICT opportunity standpoint. Anywhere IT/Cloud Computing Advances Work Anywhere and Improve Operational Efficiency IP/IT Mobility is a top priority for enterprises and will continue to place a high priority on mobility initiatives primarily for productivity increases, with mobility activities heating up in emerging markets. Increase in demand for mobility solutions would have positive impact on overall ICT market. Mobility Continues to be a Top Priority Key Trends Implications Positive/ Negative Potential Headline Propositions Interest in Offshoring and Outsourcing Continues Outsourcing will continue to grow in 2009 despite economic slowdown. Although things look gloomy for the larger global economy, the outsourcing market represents a dichotomy: on the downside, organisations' cost-cutting outsourcing strategies may negatively impact market growth, but at the same time, the upside is that outsourcing will be adopted by more organisations to help them work through financial and competitive challenges. Improve Operational Efficiency IP/IT, Unify Comms, Work Anywhere and Optimise Network Centric Security

41. Analyst predictions – business focus (1/2) Predictions IDC predicts global IT spending growth to slow to 2.6% (half of 2008's 5% growth rate). The slower growth will effectively strip out $35 billion of potential growth in 2009 and will take three years for IT to return to 2008 growth rates. As a result of this poor growth environment, it will be critically important for suppliers to look below the surface and more quickly and decisively orient their businesses toward customer segments that are spending at above-market growth rates, and toward offerings with benefits that are magnified in a down market. Whether the economy is running low or high, finding qualified people remains a full-time pursuit. When it comes to the types of expertise they will seek in the future, CIOs expect to increase expertise in information design, business process design, and relationships and sourcing, while decreasing their expertise in technology infrastructure and services. Growth opportunities for telecom services in mature economies can come only from a wide range of advanced digital services. In emerging markets, carriers need to innovate to face competition and support advanced users, but they can only invest marginally in the more advanced services needed in mature economies. Services will include mobile messaging m/presence, advertising, information services, video and identification. Global growth will be cut in half and take three years to come back Through 2012, business demand for IT-driven growth and innovation will outstrip the supply of qualified people to fulfil it. Through 2012, truly global companies offering communications and cloud computing will show more revenue growth than their peers not offering these services. Source: Gartner Forrester, IDC and Industry Reporting

42. Analyst predictions – business focus (2/2) Predictions Outsourcers will look to make strategic investments, part of which will be acquiring (or merging with) other services firms with the goal of achieving the extension of capabilities, ensuring scalability for growth, pursuing more strategic investments for long-term growth and competitive advantage. IDC believes that with the economic downturn, the services industry will enter a new phase of restructuring over the coming years, with these host-based models becoming a more focused option for meeting customer outsourcing needs. In the last decade, Indian service providers and traditional service providers have been competing in the market while focusing on filling their respective delivery gaps. As Indian providers seek new revenue growth opportunities, the potential for acquiring an indigenous European service provider versus organic growth presents a favourable option in terms of speed, access to an existing client base, local country presence, and optimizing complementary strengths. The capital crisis will further exacerbate consolidation in the telecom sector, stimulating more mergers in all regions. Telcos will expand aggressively into cloud services. The emerging cloud services delivery model presents a once-in-a-generation opportunity for the telecom industry to accelerate what they've attempted do for decades with limited success: diversify into broader business and consumer value-added services Outsourcing services market to consolidate and restructure By 2011 a large Indian service provider will buy a large European service provider. The telecom industry will consolidate, and expand, in 2009 Source: Gartner Forrester, IDC and Industry Reporting

43. Analyst predictions – technology focus (1/2) Predictions The purpose of UC is to expand the scope of traditional coms possibilities. IDC believe UC will change the way companies do business internally and externally, and ultimately the coms culture of companies. This means that UC will shape enterprise coms, infrastructure, and related services for many years to come. The impact will be seen in the changing nature of enterprise telephony (with software becoming more dominant), business applications, enterprise mobility, and in consulting, integration, and managed services. As part of outsourcing engagements, customers will increasingly look toward new technologies (e.g., virtualization, Web services, and unified communications) and service models (e.g., SaaS, cloud/utility computing, hosting, and homeshoring) to support customers' need to drive down costs as well as improve quality of service and operational capabilities. Most organizations are already using, piloting or investigating at least some social software such as social networking tools, wikis. Although awareness, interest and willingness to deploy social software will continue to increase, several factors will prevent large organizations from investing in broad pre-integrated suites of social software functionality for use by all their employees such as uncertainties about business benefits Unified communications will change the way companies do business Acceleration in offering new technologies and new delivery options as part of outsourcing engagements By 2012 more than 30% of large organizations will have deployments of social software suites available to all their employees Source: Gartner Forrester, IDC and Industry Reporting

44. Analyst predictions – technology focus (2/2) Predictions According to IDC's 2008 European WAN Manager survey, the overall number of companies that expect to be using legacy data network services at the end of 2009 is, unsurprisingly, down on 2008. The number of companies expecting to use carrier Ethernet services is 15% higher, making Ethernet the only service to see any significant increase in customer numbers. Awareness initiatives by the MEF and individual providers will further highlight the attractiveness of Ethernet services in 2009. With the global economy on hold, enterprises are seeking to maximize efficiency, reduce capital spending, rationalize assets and infrastructure, and control opex. In the datacenter, this translates into a continued increase in the use of blade servers, looking for energy efficiency gains, higher utilization rates, datacenter consolidation, and greater use of third-party datacenters in the form of collocation. Virtualization is becoming standard on x86 servers in the datacenter, and will be accelerated further by the current economic situation, as companies seek efficiencies improvements. The emergence of cloud computing will up datacenter requirements from both enterprise and service provider customers and will, again, be stimulated by the credit crisis; in absolute size, however, it will remain a small part of the market in 2009. Ethernet will be the rising star in data services in 2009 Datacenter Providers Will Have a Good 2009 Virtualization and Cloud Computing in the Datacenter Market Source: Gartner Forrester, IDC and Industry Reporting