NCR Corp. ( NCR ) will soon be offering a range of independent data center design consultancy services in the Middle East and Africa ( MEA ). To make its cloud-based services operational, NCR will join hands with Foresight Technologies Pvt. Ltd. UAE-based Foresight has more than 50 years of experience in providing information technology and telecom solutions.
Gartner expects the data center market to grow at a 5-year (2010-2015) CAGR of 18.9% to $176.8 billion. Therefore, NCR's program is likely to help it position it for a share of this growth.
The company's relation with the MEA region started in 1955 when the company opened its subsidiary in Cyprus. A favorable business climate, excellent telecommunications infrastructure, well educated and skilled human resources, favorable tax rates and proximity to the Middle East and Africa markets prompted the company to operate from the island country.
The MEA happens to be one of the fastest growing markets in the world. And this has encouraged NCR to expand operations there, time and again.
The new services will include independent data center review, environmental assessment, design and design validation, compliance audit, certification and training services. The services will eventually help telecom carriers, financial service providers, retailers and airlines to improve the reliability and efficiency of their data centers, meet future capacity requirements and reduce operating costs.
Apart from this, NCR launched a comprehensive bill pay solution for local telecom companies. The new Self-Serv Bill Pay kiosk was customized for telecom operators seeking greater market share and higher return on investments.
NCR's focus on emerging markets is palpable. A few months back, the company entered into a strategic alliance with Scopus Tecnologia for manufacturing and developing ATMs in Brazil.
Per this deal, Scopus was to acquire a 49.0% equity stake in NCR Manaus, NCR's Brazilian manufacturing and engineering operations. Concurrently, BancoBradescoS.A. ( BBD ) made NCR its preferred ATM provider through an agreement. The bank placed an initial order of 6,000 machines and announced plans to buy up to 30,000 machines over the next five years.
As evident by the last quarterly performance, revenue contribution from the emerging regions was significant and up from the year-ago level. We believe that NCR's relentless efforts in the emerging region could result in more stable revenues.
NCR has a Zacks #2 Rank, implying a short-term Buy recommendation.