The Road To Success

In one of the toughest, fastest moving, least stable markets around, SCC has achieved consistent year on year growth and established itself as Europe’s largest independent technology solutions provider and a UK 10 privately owned business. What lies behind this success is a remarkable vision to create a long lasting substantial business with a unique family culture.

The company story unfolds against a backdrop of dramatic and far reaching changes brought about by the impact of IT on the way we live and work. Structured and designed around first-hand experience of mainframe service delivery, SCC has pioneered a service philosophy in the desktop marketplace since its inception.

Start-up In The 1970s

In the early 1970s, corporate IT departments are moving away from just one user, adding terminal after terminal to their mainframe computer systems.

The IT recruitment arena is taking off with demand increasing for systems analysts and programmers – Cobol and ICL Plan being the popular programming languages.

1975 sees not just the birth of Microsoft and BASIC – the first PC computer language programme – but the founding of the company.

At a time when the UK establishment secretly views entrepreneurs as one step up from the criminal fraternity, the Manager of Honeywell’s largest UK branch decides to build a big business. To make life more difficult, Sir Peter Rigby’s chosen field of computer sales and service is a capital intensive activity and all he has is £2,000. So SCR is set up as a means to an end. The company supplies computer staff to large organisations and becomes national within a year and international within three.

More importantly, it generates the cash needed to meet longer term objectives.

Money is ploughed back in to generate growth and diversification as the demand for spreading the cost of one computer across several companies gathers speed.

Investing For Growth In The 1980s

SCS launches in 1980 in response to the demand for outsourced payroll functions and bureau services.

The invention of the microprocessor makes computers so cheap that user departments are buying their own personal computers out of petty cash. The need for standardisation is evident with users in a typical company buying up to 100 different models out of only 250 in existence.

Market research predicts that the growth in demand for PCs will even attract the computer giants and the company is busy forming relationships with Compaq and IBM.

The breakthrough comes in 1982 with the introduction of Intel’s 286 microprocessor. The company is well positioned to shift up a gear following the introduction of the IBM PC, closely followed by the Compaq portable PC.

SCC launches in September, providing the expertise many companies lack to bundle up the right combination of hardware, software and services to suit their business needs.

Appointed an IBM PC authorised dealer in 1983, SCC’s first PC sale is an IBM DOS 1.0 to Massey Ferguson (cost £12,000). As Space Invaders storms across the land and Lotus spends over $1 million launching Lotus 1-2-3, SCC quickly establishes itself as a leading UK reseller branching out from Birmingham to Liverpool and London.

In 1984, SCC bags its first major new business win, a £4m per annum contract to supply IBM PCs to Government Communications Headquarters (GCHQ). HP introduces the LaserJet printer and SCC opens in Leeds.

As the PC market grows, SCC prospers with annual sales reaching £12m in 1986. The Byte Shop group is acquired the same year and SCC opens offices in Glasgow, Manchester, Nottingham and Southampton. Only 5 years old, SCC is voted IBM Quality Dealer of the Year in 1987 with sales more than doubling to £26m.

Before Microsoft unveils Excel – the first major Windows application – SCC invests in more logistics, moving out of Birmingham City Centre to a new 30,000 sq ft campus at James House.

SCC opens 3 new IBM System Centres in 1988, taking advantage of the rapid growth in PC sales.

The range and functionality of PC models and platforms increases and proof of testing grows in importance. SCC invests in a Connectivity Centre which pilots applications and solutions in a “live” environment.

In 1989, the company sales reach £47m with growth rates over 40%. Profits are constantly re-invested in the business, planning for the long term. SCC opens offices in Edinburgh and the City of London bringing the national total to 10.

While Tim Berners-Lee writes the prototype world wide web using his creations URLs, HTTP and HTML, the UK is in the grip of recession in 1990 and the market slows down. But the company is well insulated, a solid customer base, good supplier relationships and no borrowings continue to generate profits. Microsoft launches Windows 3.0 and the 486 computer comes to market from £6,000. SCC opens in Bristol and some competitors fall by the wayside: MBS and Personal Computers cease trading and P&P pulls out of PCs to focus on distribution.

Business is looking to get the most out of its IT investment and the company buys Asystel and the PC and training business of Applied Micros. The following year, 1991, SCE launches to provide software and applications training.

Unix becomes a commercial operating system, second only to ICL VME.

UK Top 5 In The 90s

The dealership business polarises with smaller companies going vertical and five very large organisations – including SCC – emerge.

The business potential of the high street appears. Individual customers and small businesses are prepared to pay up for the latest hardware and software to complement Microsoft Windows. Not to mention the arrival of GameBoy with a version of Super Mario Brothers.

In 1992 sees the company’s initial foray into domestic and small business through Byte Direct Mail Order. IT consultancy now accounts for half the turnover of the ‘Big 8’ Accountancy Firms.

In 1993 the first Conran designed Byte Computer Superstore opens and SCC opens a new engineering and customer services centre. Microsoft launches Windows 95 and Intel announces the Pentium processor.

The experience developed in the corporate sector is packaged up and applied to the High Street. By 1995 there are 16 superstores and Byte is acclaimed for expertise and service.

Computer stationery and peripherals extend the services range when the company buys Scotbyte Computers and Scotbyte Supplies.

The strategic goal of transforming Byte into a major player in IT retailing is achieved in 1996. A deal is struck with Office World and concessions open in 46 stores bringing the national network to 62 outlets.

One of SCC’s core values is to do the best for its employees and the wider community. In 1996, this desire to put something back translates into founder sponsorship of Millennium Point, a Millennium project to build a world class centre for innovation and technology.

Service gaps widen for reliable PC support and maintenance and SCC opens a National Response Centre at Oldbury. As profits surge by 48%, SCC invests over £6m in extending its commissioning and logistics.

The PC becomes the platform of choice and vendors become more dependent on resellers and systems integrators like SCC who provide all the services and products large companies and public sector organisations need.

Job Generation And Wealth Creation

The competition is changing. SCC competes with systems integrators like EDS, Hoskyns and Sema. Group strategy is to become a £1 billion business by the year 2000.

In 1997 the company buys the maintenance arm of Network SI to enhance its engineering services and Natwest and the Sunday Times recognise SCC’s contribution to job generation and wealth creation with the Business Enterprise Award.

The SME market is looking for a ‘one-stop shop’ IT solution and Specialist Direct launches with a package of hardware, software and services tailored to the needs of growing businesses.

Channel Assembly offers customers more choice and in 1998 IBM selects the company as an AAP (Accredited Assembly Partner). 250 new jobs are created and group sales head for £500m.

With hi-tech growth and investment potential at an all-time high, 1999 sees the culmination of a £7m investment programme to provide highly responsive and scalable commissioning and assembly services.

British Airways awards SCC the UK’s largest desktop outsourcing contract to date and the acquisition of Elcom UK strengthens SCC’s service capabilities in the South East.

The company announces £10m of investment in e-commerce related services including a purpose built 40,000 sq ft, high security web hosting facility and internet solutions from a new brand, ISP4Business.

The year is 2000, E-commerce is the rage but making it profitable is costly and risky. Companies are taking part in Web enabled buying consortiums to cut procurement costs and selling services over the Web.

The first half of the year is challenging. For many competitors the market is slower to recover than anticipated. Against an industry backdrop of doom and gloom and profit warnings, the company logs full year profits up 36% at £15.1 million.

The demand for pan European IT service delivery is accelerating as more and more companies operate and trade in Europe. The May acquisition of European dealer giant Info’Products/Allium propels the Group into the No. 1 slot in Europe. The acquisition is part of a long term strategy to become a truly international player.
SCC’s service strategies are leading the UK market. As the trend to outsource IT management and services advances in the UK, so it gathers speed in continental Europe. With wholly owned coverage in seven European countries – 4,000 specialist staff operating from 50 offices in key locations – the company is ideally positioned to extend its service range to European corporates ahead of outsourcing demand in countries like France, Belgium, Holland, Italy, Spain and Germany.

After 10 years’ of providing global service delivery via association and partnerships, concerns grow about the lack of ability to influence high standards of service. May 2000 sees the launch of SGS (now International Services), responding to the requirements of large international companies for a central point of contact for global IT service delivery. SGS covers over 60 countries worldwide, complementing SCC’s wholly owned operations. SGS is already working on pan-European and global e-commerce initiatives to make it easier to manage and deliver IT solutions worldwide.

The long term investment in skills, people, infrastructure and culture to establish trust and build customer relationships around IT service management is delivering what business wants. The company records five record months against the industry trend, not to mention over fifty new business wins (totalling over £150m) in the UK alone.

October sees SCC assembling HP computers in a purpose built facility in Birmingham. In addition to assembly and commissioning, SCC now directly responds to customer demand for custom build projects – a fast growing niche market.

International Services

2001 the trend towards outsourcing IT Services management and delivery is growing at over 50% as successful businesses concentrate on core competencies.

The company solidifies their position with another major acquisition, Compelsource, the number three systems integrator in the UK in a £19 million deal. In the same year SCC wins a €585 million, five year, desktop supply deal for CSC’s customers, including BAE Systems, DuPont, AMP, JP Morgan and BHS. In 2001, Computer Business Review name SCC the fastest growing, privately-owned IT company in the world.

The following years see SCC expand its European base with the acquisition of Proxis, LNA, and Ares infrastructures’ maintenance and hosting division in France. SCC continues to extend its European specialist services with its International Service Centre in Romania and Recycling Technology centres across the United Kingdom, France and the Netherlands.

In 2010 SCC acquires Kavanagh to reinforce its leading position in Data Centre transformation and by acquiring Technical Support Group (TSG) in 2011 SCC strengthens its print engineering support services and enhances the overall managed print service capabilities.

In 2012 SCC secures role in G-Cloud framework, following a comprehensive public tender process the Government Procurement Service grants SCC’s application to offer G-Cloud services in four categories, including Infrastructure (IaaS) Services, Platform as a Service (PaaS), Software as a Service (SaaS) and Specialist Cloud Services. Following this SCC announces Pan Government Accreditation for its new Sentinel by SCC Cloud solution, the cornerstone of OptimiseCloud™, and becomes the first UK provider to achieve this accreditation.

In 2013 SCC continues to do what it always has done: invest in people, partnerships and services, stay ahead of the trend, enhance skill sets extending services around ICT infrastructure and effective information management and never be afraid to pioneer and innovate with emerging technologies and new market opportunities. SCC demonstrated its recycling capabilities with being named as Electrical and Electronic Equipment Recycler of the Year at the National Recycling Awards 2013, its partner credibility with winning Oracle Server and Storage Specialised Partner of the Year 2013 for UK, EMEA and Global, as well as reaching EMC Velocity Partner Premier Level in record time and amongst the first UK channel players to offer Microsoft’s Surface Pro. SCC also partnered with Lenovo to win the National Desktop and Notebook agreement (NDNA) to offer technology and services to UK universities.

SCC released a set of financial results revealing continued positive growth for the year ending 31 March 2013. Despite challenging trading conditions and distortions created by last year’s disposal of distribution arm SDG, SCC’s UK revenues grew 3.5% over the financial year to £665.30m, accompanied by an unprecedented level of major contract wins that leaves the company well positioned to record major growth over the course of FY14. Revenues also continued to increase at the company’s operations in Europe, recording a continental growth rate of 2.2% to £906.7m.