BT agrees £100m communications deal with PepsiCo

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BT has won a seven-year deal with the soft drink giant PepsiCo to provide it with a host of internet, telecoms and IT services across the globe. The deal was won in conjunction with Hewlett-Packard and is thought to be worth about £100m to BT over the life of the contract.

BT Global Services will manage PepsiCo's communications needs across 900 locations in more than 60 countries and will also upgrade its network infrastructure. Meanwhile, HP will consolidate the soft drink company's technology infrastructure into three global data centres.

François Barrault, the head of BT International, described the PepsiCo contract as a "landmark agreement". The win follows a similar deal with Bristol-Myers Squibb that was considered significant as it suggested that the UK company, whose headquarters are in the US, had broken into the American market.

The deal is the latest in a series of high-profile contracts won by BT with large multinational companies including Unilever, Reuters and Philips.

BT hopes to double its revenue in regions such as the US, Japan, India and China as it looks to offset declining revenue in its UK residential telecoms business. It also hopes to expand in continental Europe, as well as in Eastern Europe and Latin America.

While many UK customers associate BT with its traditional telecoms business, its Global Services division has become the company's main growth driver alongside broadband. BT Global Services serves global customers across 170 countries and employs 27,500.