British telecoms incumbent BT (London, UK) has announced that Luis Alvarez will replace Jeff Kelly as chief executive of the company’s Global Services business.
Having previously served as president of BT Global Services Europe, Middle East, Africa and Latin America, Alvarez will take over from Kelly on October 1.
According to BT, Kelly has decided to return to the US, where he will continue to work for the group in a part-time capacity as a senior executive advisor.
BT hopes that Kelly’s knowledge and understanding of the US market will help the operator develop its North American business.
Kelly has served as Global Services chief executive for the past three years, a turbulent period for the division.
The company says the financial performance of Global Services has improved markedly under Kelly’s watch, but the unit, which provides networked IT services to global corporations, has recently struggled.
For the first quarter of the year, revenues generated by Global Services were 9% lower than in the same period of 2011, at £1.73 billion ($2.81 billion), while earnings before interest, tax, depreciation and amortisation dropped 14%, year on year, to £119 million.
Although Global Services signed some important deals during the quarter, winning business from Rolls Royce, Tesco and Unilever, its order intake was £500 million less than in the first quarter of 2011, at £1.1 billion.
Alvarez will make sure that customer support continues to improve, said BT.
“I have a deep understanding of what our customers want and I also know what we can do to build an even better and more efficient business,” said Alvarez. “The global economy is going through a period of rapid change and the BT Global Services team is well placed to support companies through that period of uncertainty and opportunity.”