BT has appointed Luis Alvarez as CEO of its Global Services division. Alvarez, a 12-year veteran, was most recently president of BT Global Services Europe, Middle East, Africa and Latin America.

 Alvarez predecessor Jeff Kelly will return to the US and act as a senior executive advisor to BT in the US in a part-time capacity

Kelly oversaw substantial cost cutting at BT Global Services as the company refocused its efforts away from general IT outsourcing back towards its core strengths as a managed networked services to global corporations and governments.

Rationalisation saw BT Global Services increase the use of shared services centres for contract delivery, squeeze better terms for its external suppliers and embark on a major rationalisation of network assets.

Alvarez will be charged with further driving out cost from the business which had an order book of £6.7 billion last year but an operating cash flow of only £183 million. In the first quarter of this financial year BT Global Services reported being hit by the tough economic conditions in Europe with revenuewas down nine percent year-on-year to £1.7 billion in the 12-week period to 30 June 2012, despite it signing contracts with Rolls Royce, Tesco and Unilever in the quarter

The Global Services division is increasingly focused in a core portfolio including MPLS, Ethernet, UCC, CRM, security, mobility and cloud services, as well as professional services capabilities

BT has won a series of significant networked IT services contracts this year including a framework deal with the European Parliament, and deals with NATO and Anglo American. It still has a number of broad IT outsourcing contracts, including a major NHS contract in London and has recently signed a contract to deliver ICT for the Lancashire County Council and schools as well as the back-office services for human resources, payroll, the customer service centre and procurement