3M sticks with outsourcer in application deal renewal

Global manufacturing conglomerate 3M has extended its IT outsourcing relationship with Cognizant in a new multi-million dollar deal.

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Global manufacturing conglomerate 3M has extended its IT outsourcing relationship with Cognizant in a new multi-million dollar deal.

The multi-year agreement expands Cognizant’s strategic relationship with 3M and encompasses a wide range of application development and related services. Under the deal, 3M aims to help drive operational efficiencies and improve productivity.

In the UK, 3M has around 15 administrative and manufacturing sites, with its UK headquarters in Bracknell, Berkshire. The firm is involved in the graphics, signage, stationery, electronics and health sectors, among others.

Cognizant said it will use its systems to reduce the total cost of ownership across 3M’s applications portfolio, including mission-critical software used in research and development, planning, sourcing and supply chain, manufacturing, sales and marketing, e-commerce, human resources, finance, and administration.

Ernie Park, vice president and chief information officer at 3M, said the deal would "help accelerate our efforts to drive cost efficiencies". The company has worked with Cognizant since 2001.

Janel Haider, director of the 3M Applications Centre of Excellence, said that a greater move to IT best practices "will enhance decision-making, improve service-level predictability, reduce defects through applications testing and quality assurance services, and help us more efficiently and cost-effectively scale production up and down, based on dynamic global market demands”.

Other manufacturers to have recently renewed or extended their outsourcing deals include General Motors with HP, and Ford with CSC.