The subsidiary will have an annual budget of around £13 billion and will manage the company’s global procurement needs
BT is creating a new subsidiary in Dublin, Ireland, to manage the company’s global procurement requirements.
The company will reportedly have a budget of £13 billion and will focus on procurement strategy, planning, and budgetary recommendations.
The new standalone business will be lead by Cyril, Pourrat, BT Group’s chief procurement officer, who hopes to use the new company’s position in Dublin to help build ties with the local tech and start-up community.
“The [new company] will be led by me and based in Dublin, which has established itself as a hub for many big tech businesses as well as start-ups,” he said in a letter to suppliers.
Currently, it is unclear how many jobs this move will generate, Pourrat said he was “excited about the prospect of accessing the deep talent pool in Ireland”.
The move comes as part of BT’s wider strategy to cut costs by £2 billion by 2025. According to Pourrat, BT is “radically changing its existing procurement capability”, with this spin-off helping to simplify the processes involved, as well as incorporating AI-powered technology.
Such cost-savings cannot come soon enough for BT’s investors. The company suspended its annual dividend back in May, with profits down 20% in the first half of the year. At the time, the company predicted a more profitable second half of the year. Now, however, with the UK in lockdown once more, the future is becoming uncertain once again.
Currently, BT expects the groups earnings to reach pre-pandemic levels in 2023.
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