June 12, 2007
Britannia Outsources IT
Services to HP India
Bangalore
Britannia Industries Ltd, India's leading FMCG firm in food
business, has selected Hewlett-Packard India (HP) to manage its
entire IT requirements, including infrastructure solutions,
consulting and outsourced services.
The three-year contract makes the Rs.22 billion Britannia the first
FMCG firm in the subcontinent to outsource its IT operations for
business transformation and accelerated growth in a competitive
environment.
Both the partners have declined to disclose the value of the deal,
citing a confidentiality clause in the contract.
"HP will implement a comprehensive IT outsourcing and transformation
project to drive our business with cutting-edge technologies and
serve our customers efficiently and cost-effectively," Britannia
Managing Director Vinita Bali told reporters here Wednesday.
The partnership envisages that HP would implement tailormade
solutions and align IT with Britannia's growth strategy, spawning
its back office and front office operations, production plants at
multiple locations, supply chain management, sales and marketing
divisions and customer relationship.
Though HP has been one of the IT vendors to Britannia, providing
customised solutions spanning hardware, software and services over
the last five-six years, it has been selected to build the latter's
IT ecosystem to enhance productivity and make its products/brands
more competitive.
"In line with the steady growth of the FMCG industry, the objective
is to build an agile and adaptive IT infrastructure that will enable
us to stay ahead of competition and increase profitability. HP's
domain expertise in handling IT services in overseas food business
will benefit our operations across the supply chain," Bali pointed
out.
HP India Managing Director Balu Doraisamy said the Britannia
contract would enable the Indian subsidiary of the $97 billion
global IT major extend its service offerings to a new vertical (food
business) and leverage its worldwide expertise to make the
differentiation.
"The deal is an affirmation of our growing presence in the Indian IT
services market across verticals. In view of the rapid changes in
technologies, growing competition and expansion of their operations
within the country or overseas, Indian enterprises are fast
realising the value and cost benefits of outsourcing their IT
requirements spanning infrastructure, products and services,"
Doraisamy noted.
Though HP continues to be a dominant player in the IT products
segment with market leadership in desktops, notebooks and printers,
its software and services and IT infrastructure divisions have been
competing with its global peers and leading Indian IT vendors for a
greater pie of the outsourcing business in the enterprise and SMB
(small and medium business) segments.
"Our services division generate about 20 percent of the total
revenue in our India operations, with a client base of 15 in
verticals such as healthcare, telecom, banking and finance,
government, manufacturing (automobile) and retail," Doraisamy added.
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