Enterprises and communications service providers
can bring their communications challenges to Nortel and
expect tailored solutions without worrying about the nuts and bolts of their
networks. That’s the key message behind Nortel’s new services-led business
focus, Dietmar Wendt said today in outlining the progress made since his
appointment nearly two months ago as president of Nortel’s Global Services

“We want to be the ‘partner of choice’ and the number one network
services and solutions provider in all segments where we choose to compete,”
Wendt said. “To achieve this, we plan to relieve our customers of network
concerns by ensuring they have the right hardware, software and configurations
for maximizing interaction of networks and components from multiple vendors,
integrators and services. Nortel can take over these time-consuming details
for customers, freeing valuable resources to focus on their businesses, not
their networks.”

“Key next steps include building on our base of qualified resources in
the regions through hiring and by establishing additional delivery partner
relationships,” Wendt said. “We also need to improve our partner incentive
plans, establish competitive pricing, and execute on our new relationship with

Nortel has leveraged its extensive expertise in real-time voice and
multimedia integration to become a strategic partner to Microsoft(x) for
advanced unified communications solutions and systems integration, the
companies announced today.

“Restoring Nortel to a position of leadership and growth requires a more
services and solutions-led approach,” said Mike Zafirovski, president and CEO,
Nortel. “We are making rapid progress toward a services business that will
align Nortel with the industry’s best.”

Picking up the pace in its move to a more services-led approach, Nortel
has also:

– Established a new operational model for the Global Services business
unit more suitable for competing in this market space. The model
features four Service Product Groups focused on global business
development – Network Implementation Services, Network Support
Services, Network Managed Services and Network Applications Services.
It also includes two Business Solutions Groups to drive vertical
market solutions and to create new services capabilities through
Nortel’s expanding services partner ecosystem – Network Business
Solutions and Network Partner Solutions. Nortel is also investing in
the evolution of its services tools and core processes using a Lean
Six Sigma approach.

– Strengthened regional services execution and delivery by establishing
local accountability for resource planning, skills development and
acquisition, cost management, sales effectiveness, and customer
satisfaction. This is expected to make Nortel more nimble in
responding to the needs of global enterprises like London-based
Rolls-Royce and service providers like India’s Bharti Airtel Limited,
each of which recently signed long-term managed services agreements
with Nortel.

– Defined a ‘go-to-market’ model that delivers Nortel-branded services
and solutions directly or through channel partners and systems
integrators based on customer requirements.