After some years of losses, Fujitsu’s New Zealand ICT business is profitable again.
Australia-New Zealand CEO Rod Vawdrey credits this to a refocusing of Fujitsu’s local efforts, away from product sales to an increasing amount of higher-margin services business. For the year ended March 2006, Fujitsu NZ turned in a $250,000 profit, a dramatic reversal from a $1.6m loss the previous year.
This is on the back of an 8% revenue increase and a 69% profitability increase for the whole of the increasingly integrated Fujitsu Australia-New Zealand business, Vawdrey says.
“More than 50%, heading towards 60% of our business would be services now”, says New Zealand managing director Joel O’Halloran.
Services have constituted a rising presence is Fujitsu’s consulting service, which started up in November last year. They allow the company to advise on IT as a whole, then weigh in with a hardware and software bid to satisfy the needs identified, Vawdrey says.