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KCOM linked in outsourcing deal with BT

Alex Scroxton

KCOM is expected to outsource its national telecoms infrastructure to BT in an attempt to reduce costs.

According to reports in the Telegraph the aim of a deal would be to shave around £10m off KCOM's bottom line and shares have rallied on the expectations that tomorrow a deal will be announced linking its internet and managed services (I&MS) division with BT.

Earlier this year KCOM took the axe to 150 staff including some in the managed services business.

The company has consistently pointed to the downturn as a cause for concern with its decision to cut staff being made against a background of "economic uncertainty".

According to the reports a deal with BT could be announced tomorrow but the Daily Telegraph also hinted that if the outsourcing option fails to come off then a sale of the I&MS operation might be considered.



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