IT services company ICL, which will be renamed next week, is to ditch its telecoms billing arm in a bid to move away from products and into services. The company believes that this will be a more lucrative market.
ICL, the UK arm of Fujitsu, will sell its mediation product and interconnect billing product businesses to telecoms operations support systems vendor Intec for £3.6m.
Clive Keyte, telecoms director at ICL, said that by offloading its product arm the company is refocusing on consultancy and professional services.
"By offering services we can offer vendor neutrality and we believe that services, not products, are the way forward," he told vnunet.com. "We can't offer both, so we've opted for the pure play services option."
Companies are increasingly looking to services rather than products to stay buoyant in a flat market. Reseller Computacenter recently put better than expected figures down to a move towards services.
Analysts agree that managed services are key to future revenue growths. In an exclusive interview Pete Foster, principal analyst for market watcher Ovum, told vnunet.com: "Margins are shrinking on hardware, and services offer a repeatable income secured by long-term contracts."
Intec acquires around 35 customers through the deal.
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