NCS buys SCS - Reposting

This had to be reposted
Singtel's IT Services subsidiary NCS has indicated that it will buy it's Temasek stable mate SCS, putting value on SCS of about S$250M. NCS has never really fulfilled its potential outside of the Singapore government and the governments various investments. SCS to was heavily reliant upon the Singapore government for revenue. Basically it will have a limited impact outside of Singapore, and perhaps even the Singapore government. SingTel has had the same mixed to poor track record of managing IT Services companies as its peer Telstra, as well as AT&T and others. As many would know as an analyst I do not rate telcos being IT Services providers, and I see no reason here to change this opinion.
BT who bought the largest South East Asian IT services firm in Frontline earlier this year appears to be the only really credible provider of IT Services in the region.
Bottom line, this will not have much of an impact outside of the Singapore government and will not provide SingTel with any super capabilities in terms of building a services capability.

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