Corus chooses multisourcing over single IT provider

Steel producer Corus is moving from a single IT services provider to a multisourcing model, in a bid to cut costs and improve flexibility.

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Steel producer Corus is moving from a single IT services provider to a multisourcing model, in a bid to cut costs and improve flexibility.

In 1997, Corus, then known as British Steel, signed a much larger £400 million, 10 year IT services agreement with Capgemini. Under that deal, Capgemini ran 7,000 PCs, supported applications and was charged with improving business processes. The deal involved the transfer to Capgemini of more than 600 British Steel IT staff at sites throughout Britain

CORUS AT A GLANCE

10,000 desktops

Microsoft Windows XP as standard

In-house and bespoke operational applications

Now moving HR, finance and procurement to SAP

100 midrange/Unix servers

300 Intel-based servers

Capgemini now manages IBM and Fujitsu mainframes on own sites

But last week Corus announced it had reduced Capgemini’s role to covering mainframe services, including a server technology refresh, in a £26 million five year deal.

In a statement made to Computerworld UK, a Corus spokesperson confirmed that the company had chosen to use a wider range of IT services providers instead of a single source.

“Corus' objective is to standardise and harmonise its IT service delivery across the group to deliver better services at a lower cost,” the spokesperson explained.

“Our goal is to move from our current contract with Capgemini to a multisourcing environment with the right mix between insource-outsource as well as the right mix between onshore-offshore.”

The company is set to plan a service delivery model, which is a set of standards for managing its IT services. Corus will manage the service desk that supports all users at its main operations in the Netherlands and in the UK.

“We have therefore split IT services being previously delivered by Capgemini into a set of service lines,” the spokesperson added.