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Salmat restructures to focus on digital services division

Chief executive expects digital will make up half of the company’s revenues by 2013

Following a full year 2011 profit dip of 26.8 per cent, Australian call centre provider, Salmat (ASX: SLM), has outlined that it will be focusing on its digital services division in 2012.

Salmat ANZ chief executive, Grant Harrod, said that its digital revenues had gone from under 10 per cent of group sales to over 20 per cent in 2011.

“We’re convinced over the next two to three years that more than half of Salmat’s revenues will come out of technology applications that we’re providing, servicing and hosting on behalf of our customers,” he said.

While Salmat is focussing on its digital services division, the federal/state government and small to medium enterprise (SME) markets are other targets in 2012.

In March this year, the company signed an eight-year deal with the South Australian government for land information management services. The Integrated Land Information System (ILIS) was designed to provide a single system for land management, information gathering and the execution of the land transactions for government and the public.

Since then, it has signed deals with the Northern Territory and ACT governments and is currently talking with New South Wales and Western Australia about introducing ILIS.

“Our other focus is building out the SME market place as we’re getting some great traction in re-positioning our communication services from enterprise to SME,” he said.

“We’ve created an online portal aimed at smaller businesses to help them engage in highly effective targeted marketing.”

In addition, the company is now halfway through its data centre consolidation project which will see Salmat reduce its 35 data centre sites down to just two by 2014.

“It’s now less than 35 data centres and that has been facilitated through consolidation of four facilities in Melbourne, Brisbane and Adelaide,” he said.

“We’re starting to see the benefits in terms of having an infrastructure that is less disparate than the historical one.”

The company has also signed a five-year agreement with Avaya for an undisclosed sum to implement a communications platform across its Australian and New Zealand operations which is designed to improve customer call resolution.

Follow Hamish Barwick on Twitter: @HamishBarwick

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More about: ACT, ANZ, Avaya, Salmat
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Tags: Grant Harrod, data centre consolidation, Salmat, Integrated Land Information System (ILIS), Avaya
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