The following information has been extracted from the Enhanced Business Review in the Annual Report and Accounts 2006.
Intec’s principal objective to be the number one supplier globally in terms of BSS/OSS product sales. We believe that such sector leadership, delivered by strong sales and profitability, is the best way for a software business like Intec to deliver maximum shareholder value. We were recently ranked number three against this criteria by Gartner Group, having risen steadily in this ranking since 2000.
We believe that this is the most realistic strategic objective for us, partly because of the strength and depth of our product portfolio, and also because we currently compete against a group of vendors that have substantial business scale in areas where we have not traditionally been active, such as system integration services or non-product related outsourcing. It should be noted that product sales is the primary driver for our other revenue streams: professional services and recurring income.We intend to continue working towards this objective through a number of well-established strategic approaches:
- Continuing growth of market share in our core product lines through our traditionally strong sales and marketing focus;
- Cross-selling of additional products to our existing 400-plus customers, the majority of whom have only one or two Intec products;
- Expansion within these core product lines by developing and commercialising additional solution offers that expand our potential customer base;
- Diversification into non-telecom markets where our product strengths have proven application, such as financial services; and
- Addition of new product capabilities, by acquisition or internal development, that we can sell to new and existing customers.
In addition to this product-oriented strategy, we are also now focusing more resources on building our Managed Services business, as we believe there is continuing stable demand for this offering, and by its regular nature it offers some insulation against the typically lumpy revenue characteristic of a large-scale software licence business.