Internet service provider (ISP) PSINet Europe has cut support staff following its acquisition two months ago by ClearBlue Technologies and Israel Corporation.
The ISP has laid off 16 staff in the UK and is downsizing its European support facility in Switzerland as part of a restructuring plan.
Its new business strategy will see a firm shift away from its bread-and-butter leased lines business to offering managed services to customers. These will include disaster recovery, remote storage and backup, and load balancing.
Currently 60 per cent of the company's business revolves around providing leased lines to customers.
PSINet's marketing director Nicholas Jeffrey told vnunet.com that a shift to in-country customer-facing functions would allow the company to offer 24/7 customer support directly from the UK.
"It's not about headcount, it's about improving the level of service and putting the right people in the right place," Jeffrey said. "By building managed service provision, we will be able to offer more of an end-to-end solution."
The company will also incorporate application performance and monitoring tools from parent ClearBlue. It is considering acquisitions in the application support area to build up its managed service offering more quickly in order to compete with the likes of BT Ignite, Exodus and Colt.
Managing director Stephen Scott will head up all day-to-day operations including the Docklands hosting centre and the customer operations group.
"These changes are vital to ensure that we can continue to provide the highest levels of customer service. As from today our organisation will be more proactive and customer-facing than ever before, and will place PSINet in the ideal position to deliver industry-leading solutions to our clients," Scott said in a statement.
A slimmed-down European service centre based in Switzerland will continue to provide pan-European or global hosting and 24/7 multilingual support.
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