Welcome to Outsourcing Guide
Negotiating With Unions On Outsourcing Article
This is a selection made from among articles on Negotiating With Unions On Outsourcing. For a permanent link to this article, or to bookmark it for future reading, click here.
OUTSOURCING HELPS SAVE £18M
from: John ParkerIf we talk about advantages of outsourcing, first thing that
comes to mind is "Cost Benefits" offered by outsourcing. WHSmith
save £18m by outsourcing head office IT to Fujitsu According to
Vnunet news "High street retailer WHSmith says the successful
outsourcing of its IT systems has helped to achieve £18m in cost
savings in its latest financial year. " The company saved £3m
more than it had hoped for this year, and is looking to achieve
similar savings next year. The figures exceed plans set out by
group chief executive Kate Swann a year ago to deliver £30m in
cuts to the business over three years. 'We saved £18m from a
number of areas, including IT, for the financial year 2004 to
2005, which was £3m more than planned,' a spokeswoman for
WHSmith told Computing. 'We outsourced our head office IT to
Fujitsu, which saved us a couple of million pounds. Our Retek
distribution technology environment was outsourced to Accenture,
and the maintenance and support of the IT in our stores went to
BT Expedite in March,' (Computing, 16 March). WHSmith disclosed
the savings achieved across its retail business in its
preliminary financial results for the year ending 31 August,
published last week. Pre-tax profits increased despite a slight
drop in sales. The results stated: 'We have identified a further
£18m of cost savings in support areas such as shared information
systems, logistics and store efficiencies.' The spokeswoman
said: 'Some of those savings will come from further efficiencies
in IT and logistics.' Nick Gladding, senior analyst at retail
researcher Verdict, believes that the efficiencies and the
rationalisation of the IT function were major contributors to
the retailer's healthier profits, particularly as sales fell by
one per cent, to £2.5bn. 'WHSmith's priority at the moment is
profit, so these cost reductions aimed at cutting its outgoings
will improve profitability,' he said. 'The savings it has
already identified for next year look likely to come from head
office technology, logistics - where it says it is closing some
of its depots - and restructuring its workforce.'
About the author:
For further information on
offshore software
development, please visit
Negotiating With Unions On Outsourcing News
No relevant info was found on this topic.