CA cuts jobs and creates services division

Computer Associates has slashed 450 jobs and launched a Technology Services organisation, which the company says will improve...

Computer Associates has slashed 450 jobs and launched a Technology Services organisation which, the company says, will improve customer service.

The division combines CA’s pre-sales and technical professional services organisation. The pre-sales team aided prospective customers in evaluating CA’s technology while the professional services branch aided customers in implementation.

Una O’Neill, senior vice-president and general manager of the Technology Services division, said, "The biggest impact is providing technical continuity from the pre-sale to the post-sale. Essentially that’s from the product evaluation period to the implementation of the product."

Customers will benefit from better accountability and a shortened delivery cycle as a result of this division, O’Neill said.

CA Technology Services is "fully operational" and has about 2,500 worldwide employees, O'Neill said.

"CA Technology Services will provide services and assistance to our channel organisation just like we do with our sales organisation," she said. "We're ready to go immediately."

CA said it would honour all existing customer deals involving products that are not from CA, but the services unit will focus only on CA product support.

CA is also restructuring its North American channel organisation to give channel partners more responsibilities as the main path to customers for the eTrust, BrightStor and AllFusion brands.

Company chairman and chief executive officer Sanjay Kumar has previously noted CA's shortcomings in selling through its channel, and in January, when financial results were released, said that the services side had "room for improvement". This announcement is aimed at rectifying that situation, O'Neill said.

Analyst group Ovum Holway said, "In 1999 CA set itself the task of doubling service revenues in Europe by the end of 2000; clearly this didn’t happen. Indeed between then and now services revenues have consistently fallen. It has become more realistic in its outlook for services."

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