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GTL Ltd (formerly known as Global Tele-Systems Ltd.), a leading player in Network Engineering and IT services in India, is exposed to a variety of risks such as marketing risks, operations risks, concentration risks, catastrophe risks and human resource risks. The article summarizes GTL's risk management strategies.
Incorporated in 1987, GTL Ltd., (formerly known as Global Tele-Systems Ltd.) is a leading player in Network Engineering and IT services in India. In April 1991, GTL went public to finance the setting up of seven telecom equipment service centers. In 2001, the company changed its name from Global Tele-Systems Ltd., to GTL Limited. With an employee strength of more than 2400, GTL is present in 21 locations in India and 11 overseas locations spread in US, UK, Germany, Saudi Arabia, Mauritius, Singapore, Middle East, New Zealand and Australia. Recently, GTL has acquired Singapore based Redington Group for $95 mn. GTL's business lines include enterprise network solutions, managed services, software development, systems integration, e-business solutions, turn-key telecom infrastructure projects, and customer contact solutions.
If GTL is unable to compete effectively with existing or new competitors, it might lead to price reductions, fewer customer orders, reduced revenues, reduced margins, reduced levels of profitability, and loss of market share. GTL competes in markets that are new, intensely competitive, highly fragmented and rapidly changing. These competitive pressures might seriously harm GTL's business and operating results.
GTL's Business application services business is largely dependent on the willingness and adoption rates of e-business practices by its customers. Any drop in the adoption rates would have an adverse impact on growth potential of the business. |
