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Orange Business Services eyes services to boost growth

It has been more than a year since Orange Business Services decided on a new go-to market strategy. The company, which is a unit of France Telecom, is looking to increase its service’s share. The French enterprise is aiming to become a leader  in communication solutions, converging telcos and IT.

In line with those objectives, Orange in October launched its fourth major service center located in Petrópolis (Rio de Janeiro, Brazil), joining other centers in India, Egypt and Mauritius Island. Currently, services account for about 30% of the company’s revenue, Americas marketing chief Renato Leite told RCR Wireless News Renato Leite, adding that reaching 50% would be “wonderful.”

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Brazil’s sales director, Carlos Monaco, declined to reveal the company’s projections for 2012, but he told RCR Wireless News that the growth this year is expected to be higher than in 2011 and 2010. Among the pillars to support that growth, Monaco highlighted customer loyalty by offering services, which represent a recurring revenue source for the company.

Until now, network solutions have been stronger, and executives think it might take awhile to balance network and services revenues.

To address Orange Business Services’ goals, the company unveiled in September 2009 its targets for 2015. The French enterprise is looking to generate 500 million euros (about U.S. $650 million) in cloud computing 2015, to sell 10 million SIM cards by 2015 on the M2M market (Internet of things), to become No. 1 for videoconferencing in France and one of the top three worldwide and to generate 1 billion euros in revenue in emerging countries.

In Brazil, Orange Business Services focuses on multinational Brazilians companies that want to expand their operations outside the country, as well as international enterprises that are operating in Brazil.

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