Sunday, January 25, 2009
BT's Global Services rang the alarm bells
The recognition by BT PLC that the results of its Global Services division have been overstated is another warning to investors of the old adage “if something appears to good to be true it probably is”.
At times when good results are needed there is a danger that they are too easily welcomed and not treated with the full vigorous scepticism that they should be.
For a truly alarming commentary on how this can happen at the largest of businesses I’d recommend ‘Stealing Time’ by Alec Klein, like the BT Global Services overstating of results story this book focuses on a giant that is scared of decline hitching its wagons to a technology led future and in this case doing some seriously questionable things.
News that BT could lose more employees can not be good but it is neccesary for the comany to keep tight control on costs as revenues look likely to slip further
Reading the piece on Sir Michael Rake makes one wonder a little about how the relationship between the chairman and Ian Livingston's predecessor was.
The idea that has been raised that it might be a good time to sell this particular division does seem odd.