Forming global alliances has become a key part of Dimension Data`s strategy, as the company recognises that no one "can go it alone", says executive chairman Jeremy Ord.
The future will see increasing co-operation between services companies for part or all of the solution, he says in the group`s latest annual report.
"The need to improve efficiencies and cut costs is driving the trend towards outsourcing and we are finding increasing numbers of clients looking to us to partner them by identifying, implementing and then managing the solution on their behalf.
"These are long-term partnerships that provide the bedrock for future growth."
Ord says the group is also looking to forge partnerships and alliances with technology providers, ensuring a two-way flow of knowledge between the source of emerging technology and the market`s requirements.
"Increasingly we are partnering with like-minded players who recognise our ability to offer services complementary to their own offerings."
He adds that the group has formalised its partnership initiatives under a global alliance team.
While it already has long-term relationships with key industry players, it is negotiating global alliances across a spectrum of technology vendors, system integrators, global telecommunications and Internet service providers.
Ord says a tough operating environment, caused by consolidation in the IT industry as a result of the IT downturn, has led to many of Dimension Data`s competitors resorting to mergers or shutting down.
"In the short-term we believe there are opportunities for Dimension Data to exploit gaps left in the market by firms focused on internal issues or whose offerings do not deliver a full solution to the client."
Ord says the global acquisition drive on which the group embarked three years ago is essentially complete.
However, it will consider "augmenting key skills through additional smaller acquisitions".
"Each region now has the core components needed to offer full solutions or can call on these skills from elsewhere within the group.
"Management will focus on maximising the benefits of or global presence and on increasing market share."
Turning to financials, Ord says that forecasting under current market conditions, characterised by uncertainty and limited visibility, is difficult.
"Our cautious optimism at half-year was dampened by a subsequent deterioration in our markets. We have assumed that revenue levels going forward will remain consistent with current run rates.
"Our response is to keep our heads down and focus on honing our strategy and structure to better position the group to capitalise on growth when the upturn comes."
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