Holy moly! Can it really be true? Has Ordina CEO, Ronald Kasteel, finally seen a glimmer of light? Here we are, at the start of the twelfth year of the millennium, and Ordina has only just investigated “whether we can set up or acquire our own nearshore facility. A final decision will be made in 2011”. Nearshore, note, not offshore. Because offshore delivery is provided by its relationship with Cognizant, which probably still can’t believe its luck to be invited ride on Ordina’s coat-tails at Rabo Bank.
Meanwhile, Kasteel’s ‘confidence’ in 2010 (see Ordina hoping for a year more ordinary) was soundly dashed. Revenues (excluding disposals) dropped by 15% to €456m – a decline rather worse than the Netherlands operations of its larger European peers. And, as expected (see Ordina returns to red), Ordina finished the year with losses at operating, pre-tax and net levels.
Despite the recovery in its sole Netherlands market, without any low-cost delivery of its own, Ordina is competing with one hand securely tied behind its back. With the Dutch public sector (47% of revenues) seemingly in as much turmoil as ours, a recovering financial services sector (27% of revenues) still highly price conscious, and competitors from all nations fixated on winning share, we fear that Kasteel’s encouraging noises about 2011 will quickly become muted.