Zain restructures to achieve 2011 targets

Zain Group CEO Dr Saad Al Barrak announced a new program to achieve its 2011 goal of being a top ten global mobile telecommunications operator.

Called ‘Drive2011’, the programme will focus on customer facing services and commercial activities while centralizing or outsourcing some non-core functions to strategic partners.

This program will maximize economies of scale and realize significant efficiencies, allowing Zain to provide communication services such as voice, SMS and data at an optimum cost structure.

Drive2011 is expected to improve Zain’s operating margin by 5% within a12 month period and provide the company the necessary thrust to capture the future growth potential of the markets in which it operates.

The Zain Group will align its head office and operations structures in accordance with the new operating model. This will result in Zain making a 13% reduction in its current 15,500 strong global workforce, representing 2,000 jobs. Zain operations in Iraq, Jordan, Kenya, Kuwait, Malawi and Sierra Leone have already begun the process.

Says Dr Al Barrak: “Drive2011 is a natural consequence of Zain’s evolutionary journey. It was planned soon after the launch of our ACE strategy in 2007 and is a structured and timetabled approach to maximizing efficiency,” declared. We will create genuine market differentiation through our services and deliver on our Zain brand promise of ‘A wonderful world’. This will be achieved through a combination of managed outsourcing, centralization and leveraging capabilities, as well as training and development for our personnel, all of which will improve our operating efficiencies.”

In a move aimed at tackling the challenges ahead and attaining other 2011 targets of 150 million customers and a US$6 billion EBITDA, Dr Al Barrak also announced several senior management changes at both Group and country operation level.