Update: BT Global Services boss leaves after just 15 months

BT Global Services is once again recruiting a new leader following the shock resignation of Hanif Lalani, who has been director of Global Services for just 15 months.

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BT’s loss making Global Services arm has acquired its third boss in three years, with the resignation of Hanif Lalani, after just 15 months at the helm.

Lalani, who had been with BT for 26 years, is leaving to pursue “personal business interests” according to Ian Livingstone, company chief executive of BT.

His replacement, Jeff Kelly a former senior manager at EDS in the US, will begin working alongside Lalani immediately.

BT Global Services, the IT services division of the telecoms giant, has struggled with a number of under performing contracts and causing its parent company to take a £1.6 billion write–down which contributed to a £2.1billion loss in £8.8 billion sales last year.

Problems with the unit’s £1.57 billion contract with the NHS and its £1.7 billion deal with Thomson Reuters are still to be fully resolved.

In addition, in February 2009, BT lost a multi-million pound outsourcing deal with Essex County Council, three and a half years before its scheduled completion. The telecom giant is threatening legal action, while IBM has triumphantly announced it a multi-billion pound deal with the county.

Over 15,000 jobs were cut, last year, from Global Services as part of a bid to cut annual costs by £1 billion.

Veteran analyst Richard Holway said on his TechMarketView blog, “We understand that Kelly's appointment is very much to do with beefing up BT GS's large programme management expertise - something they have really needed.

Holway also highlighted Kelly’s top level customer relationship expertise, something “that EDS was so good at”. However, Holway warned “if Kelly's appointment signalled a return to the previous flawed ambitions of BT GS becoming a global competitor to the likes of IBM Global Services or the new HP services operations.”

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