Datacom Group

Datacom Group Limited

Type	Private company
Founded	1965 (as Computer Bureau Limited)[1]
Headquarters	Wellington, New Zealand
Products	IT services
Website	datacom.co.nz

Datacom Group Limited is a New Zealand owned and headquartered IT company. It was 35% owned by state-owned enterprise New Zealand Post^[2] until December 2012 when that shareholding was sold to the New Zealand Superannuation Fund for $142m.

Datacom was founded as Computer Bureau Ltd in Christchurch, New Zealand in 1965. It expanded nationally through the holding company Datacom Group Ltd in 1971. It opened offices in Australia in 1992, and in Asia in 1994. Jonathan Ladd serves as group CEO of the company; Greg Davidson is the CEO of Datacom New Zealand.^[3] Datacom's majority owner John Holdsworth stepped down as chairman of the board in 2012 and was replaced by New Zealand businessman Craig Boyce.^[4]

History

1960s

Datacom was founded as Computer Bureau Ltd by two Christchurch accountants, Dr Bernard Battersby and Paul Hargreaves,^[5] who had a vision of providing cost effective IT services to clients who needed automation but could not afford to take on the risk alone in a market in which skills were scarce and risks significant and the cost of the technology very high.^[6] The company hired its first systems analysts and programmers in August, 1965, and installed the first computer for a client in September of the following year. Additional offices opened in Wellington, Hamilton and Auckland between 1968 and 1970.^[7]

1970s and 1980s

Datacom began offering remote on-line services through onsite terminals beginning in 1976. The company set up a data communications network and a New Zealand-wide timesharing service in the early 1980s. The company also began offering software applications and payroll services to businesses throughout New Zealand. After merging with computer-services company CCL in 1989, Datacom added facilities management and payroll divisions.^[8] Its reach into the wider business community was enhanced by its work in payroll and in field engineering.

1990s

In 1992, Datacom established a contact centre in Sydney, which led to a regional service that provided diagnostic technical support services to clients and customers, especially with Microsoft with which Datacom had a long relationship. The business also established partner programs and sales services with the channel and reseller community. Datacom began exporting some of its facilities management and IT services into its Australian offices in the late 1990s, leading to the company’s first data centre in Australia.

2000s

During the 2000s, Datacom made a series of acquisitions that spread its services to other locations in Australia. In 2004, it purchased the GlobalCenter, its second data centre,^[9] and the following year, the company purchased NetOptions to establish a presence in Queensland.^[10] It expanded from this base in 2007 after acquiring IT services company Agire Pty Ltd, located in Townsville. Through start-up opportunities with local partners, Datacom moved into South Australia in 2006, and Western Australia in 2007. By the end of 2007, the company had acquired a third data centre in Sydney through Hansen Professional Services.^[11] Its fourth data centre came in 2011 in Western Australia.^[12]

Datacom commenced business in Asia in 1994, building contact centres in Malaysia in 1996, and the Philippines in 2008, at the same time establishing a presence in China.^[13]

In 2009 Datacom opened its Auckland data centre, Orbit.

2010s

Datacom opened a sister facility to Orbit, Kapua, in Hamilton in 2013.^[14]

In 2013 Datacom also sold the contact centre arm of its Asia business,^[15] but continued to serve the market with IT services.

In the same year Datacom acquired an SAP payroll firm in Melbourne to establish a strong relationship in the Australian health sector, and as a provider of SAP services.^[16]

In 2014, Datacom announced its acquisition of Tauranga-based software company Origen Technology Ltd.^[17]

Financial health

Revenue for Datacom increased by 10 per cent over the year ending 2013, for a total of $870 million, which came largely from the company's IT management, software development and business process outsourcing services. Profit before tax was $50.9m, up 26 per cent, and profit after tax was $36 million, up 43 per cent.^[18]

References