Liberty Global rebrands BPO division as Liberty Blume to enhance tech-enabled services

Liberty Global has recently initiated a significant expansion of its business process outsourcing (BPO) division, marking a strategic shift in focus towards tech-enabled services. Formerly known as a shared services operation, the unit has been rebranded as Liberty Blume and aims to redefine global business services by leveraging advanced technologies and a specialised workforce.

The reorganisation and rebranding were completed earlier this month, with Liberty Blume now based in London and The Netherlands and employing approximately 800 individuals. Describing itself as “an exciting and emerging new business within the LG family,” the operation is set to move beyond its historical role of merely supporting Liberty’s telecom operations across Europe, towards a broader portfolio that includes diverse new offerings.

As part of its growth strategy, Liberty plans to expand Blume’s services beyond traditional areas such as accounting and payroll management, which were the mainstay of its previous iteration. One of the notable initiatives is the establishment of Liberty Blume Energy, a new venture to provide wholesale solutions tailored for business-to-business clients, including corporate energy brokerage services. This initiative aligns with other “Energy Transition” projects Liberty has been developing, such as Egg, a clean energy supplier launched in 2022, and a joint venture with Zouk Capital, Believ, focused on electric vehicle charging infrastructure.

Moreover, the division is keen on enhancing its capabilities in the insurance and financial services sectors. To this end, Liberty has recruited Aniqa Sandhu, formerly of Digicel Group’s Digital Financial Services unit, to lead its newly formed Financial Solutions division. Under her guidance, Blume intends to roll out B2B energy offerings and a lending services line, both of which are projected to launch in 2025, as indicated on the company’s website.

This rebranding and service diversification are part of a broader restructuring effort at Liberty Global, which aims to move away from traditional telecom models and respond to perceived undervaluation in its market shares. Earlier in the year, the company shared a five-point strategic update, outlining significant organisational changes involving its European assets, which include the split of Virgin Media O2 into separate NetCo and ServCo entities, and plans for a holding company for its Belgian and Dutch interests.

Additionally, Liberty Global is exploring new investment opportunities through its investment arm, Liberty Growth. This entity holds stakes in around 75 companies across various sectors including media, sports, and data centre operations. The push towards commercialising BPO services is a logical follow-on from Liberty’s past mergers and acquisitions, which have led to a reduction in demand for internal functions and the emergence of new clients outside the company’s traditional telecom services.

Liberty Blume’s repositioning echoes a trend observed among other European telecommunications operators, who are similarly pivoting their internal operations towards external commercialisation in the wake of substantial mergers and acquisitions. Vodafone, for instance, has created a Shared Operations division to monetise its central services. This was followed by the relaunch of its BPO division VOIS in collaboration with Accenture to offer services to external industry players.

Further competition in the BPO landscape also comes from industry rivals such as Orange and Deutsche Telekom, both of which have successfully marketed procurement services to other telecom operators through collaborative ventures, showcasing a growing trend of telcos evolving towards a broader range of service offerings in response to changing market dynamics.

Source: Noah Wire Services