Luis Alvarez is to become the new CEO of BT’s Global Services business unit next month.

Alvarez leaves his position as president of Global Services’ Europe, Middle East, Africa and Latin America division.

He replaces Jeff Kelly who has decided to return to the US, where he will remain an advisor to the company, after less than three years in the job.

Global Services has been a problem for BT, which has been the UK-based operator’s worst performing division in recent times.

In the last quarter, revenues fell nine percent despite winning contracts from blue chip companies such as Rolls Royce, Tesco and Unilever.

BT said sales were down due to lower order values and longer lead times and were exacerbated by problems in the European economy.

Nevertheless, BT claimed the division’s financial performance had “substantially improved” during Kelly’s reign, while its risk profile and delivery capabilities were “transformed”.

Alvarez said he is “passionate” about BT Global Services and sees “great opportunities” in the marketplace.

He added: “I have a deep understanding of what our customers want and I also know what we can do to build an even better and more efficient business.

“The global economy is going through a period of rapid change and the BT Global Services team is well placed to support companies through that period of uncertainty and opportunity.

“We have a strong business in the UK, mature operations in key economies and are expanding our presence in the fastest growing parts of the world. These are strong foundations that we will build on.”