Reuters In $1 Billion Outsourcing Deal With Fujitsu

[OhioChick]

Source: Information Week

Under the ten-year agreement, Fujitsu will provide a range of IT services to Reuters locations worldwide in more than 100 countries.
August 17, 2007 11:00 AM


News agency Reuters said Friday that it is outsourcing its internal computing operations to Fujitsu Services under a deal worth almost $1 billion.

Under the ten-year agreement, Fujitsu will provide a range of IT services to Reuters locations worldwide in more than 100 countries. Reuters said an unspecified number of its tech support workers will transfer to Fujitsu to help the Japanese outsourcer fulfill the deal.

The $993 million contract will allow Reuters to "accelerate the development of our internal IT services, giving us greater flexibility to respond to the changing needs of our business divisions," said Reuters CIO David Lister, in a statement.

Fujitsu Services chief executive David Courtley, also in a statement, said the pact will "help enable a step-change in Reuters productivity and hence competitiveness."

The contract calls for Fujitsu to create a standardized, globally consistent IT environment for Reuters. Fujitsu's multi-lingual service desks in Lisbon and Kuala Lumpur will support the effort.



Read more: http://www.informationweek.com/news/showArticle.jhtml?articleID=201800845

[ramapo]

1. hmmm.so much for our Reuters business

Our small consulting firm provides IT operators and low-end help to Reuters. I have a feeling that business will soon end.

[MadMaddie]

2. Don't worry...the business will come back to you eventually....

these deals are poorly thought through......many companies are starting to bring back a lot of their work in house....

Reuters will pay for hit in the long run.....also another way to cut employees....

[Tandalayo_Scheisskopf]

3. A friend of mine...

Worked at a very large company that was toying with outsourcing. They farmed out work to another country, some database work. They got the work back in one HUGE flat file. No tables, no separate databases. Nope. Just one huge mess.

Outsourcing crisis averted. ;-)

[MadMaddie]

4. That is the irony isn't it? When they eventually bring it back in

house they end up spending more to fix the numerous issues created by outsourcing it? Bizzaro world...