Chief exec warns hardware sales expected to drop ten per cent, but forecasts MS upswing

Computacenter predicts managed services boom

Computacenter has predicted that hardware sales at the UK’s largest reseller will drop this year, but said that it expects managed services to boom.

Speaking a month after the firm entered the FTSE 250, chief executive Mike Norris said hardware sales were anticipated to drop by around ten per cent compared to 2008. However, Norris was confident that that slack would be picked up by a major uptake in the firm’s managed services division.

"Economic conditions are affecting the markets in which we operate," Norris told Mobile News. "However we can, and do, help businesses reduce costs and become more competitive, which makes our managed services offerings more compelling, as our recent contract base growth illustrates."

Norris pointed towards recent managed contract wins at Nationwide, Unipart, Marks & Spencers and Hays as a sign the firm is at the crest of the wave in the UK. "These and other contracts will result in a UK contract base of approximately £240 million by the end of Q1 2009," he added.

"We expect this growth to continue at a similar pace throughout the year, though our product revenues are under pressure."

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