By Julian Goldsmith, 4 September 1998 00:30
NEWS Training and recruitment company, Delphi has announced plans to move away from the IT services sector with the sale of its US and French IT solutions subsidiaries, Alpine and Decan. Delphi is operating at a profit and Decan exceeded expectation in performance, but investment in Alpine wiped 70 per cent off the company's operating profit for the last six month period. The company explained it had poured resources into the US subsidiary since its acquisition in October 1996. In a prepared statement it said: "It is now clear that for this strategy to be successful we would need to invest more in order to achieve critical mass in solutions. Therefore we have taken the decision to exit solutions, to divest our investment in Decan and sell Alpine to a strategic partner as soon as is practical." The move has been met with interest by industry commentators, as customers are increasingly switching to the strategy of relying on one supplier for all their IT needs. A source close to the situation suggested that the company felt its core skills were incompatible with the IT solutions sector and had decided to concentrate resources and expertise on training and recruitment.
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