Reuters Inks $1 B IT Outsourcing Deal
17/08/2007
The financial data giant expects to cut IT delivery costs 25% by transferring tasks and staff to Fujitsu Services

by Andy McCue

Reuters is aiming to slash IT service delivery costs by a quarter through a £500m outsourcing deal with Fujitsu Services to roll out a standardised IT platform across its global operations.

Around 300 IT staff will transfer across to Fujitsu as part of the 10-year deal, leaving an in-house service delivery team of 25. Reuters said there will be no redundancies.

Reuters CIO David Lister told silicon.com the deal will see annualised savings "in the region of 25 per cent".

He said: "We see our role as service aggregator not service provider."

The contract covers Reuters' core IT internal services, including email and desktop, and consolidates a number of existing deals. Fujitsu will also be responsible for the management of some of Reuters' other outsourcing suppliers, such as Satyam.

Lister said: "It addresses a lot of our legacy issues. We have acquired a lot of different systems and platforms over the years. This allows us to move onto a single, standardised, virtualised on-demand platform."

Virtualisation - both on the client and server - will be a key part of the contract and Fujitsu has already begun work on an 18-month transformation plan.

Lister said: "Whether inside an internet café in Australia, at home or in the office employees can access workplace applications."

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Fujitsu appointed to transform Reuters IT infrastructure

16th August 2007 — Fujitsu Services has been awarded a landmark global contract for the internal IT infrastructure of Reuters, the world’s largest news and information provider. Fujitsu has agreed a 10 year contract with Reuters to provide IT services for Reuters 17,500 employees based in more than 100 countries around the world, from Dubai, to China, to Brazil.

Fujitsu Services has been awarded a landmark global contract for the internal IT infrastructure of Reuters, the world’s largest news and information provider. Fujitsu has agreed a 10 year contract with Reuters to provide IT services for Reuters 17,500 employees based in more than 100 countries around the world, from Dubai, to China, to Brazil.

Reuters is the leading global financial data and news company providing information tailored for professionals in the financial services, media and corporate markets. As part of the deal, the contract sees a number of Reuters staff transfer to Fujitsu from around the world.

The new IT infrastructure will be hosted by Fujitsu and will improve substantially the end-user experience for Reuters people. Fujitsu will transform Reuters internal computer systems so that users can gain seamless secure access to IT services wherever they are in the world. The solution will be supported by Fujitsu multi-lingual service desks in Lisbon and Kuala Lumpur. Data centre services will be provided from Fujitsu facilities around the world. It is anticipated that this innovative approach will offer Reuters significant productivity improvements and improve their competitive edge.

David Lister, Reuters chief information officer, said: "This partnership 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. It will provide technology appropriate to the needs of our people wherever they are working around the world."

David Courtley, chief executive of Fujitsu Services said: "For Fujitsu this is a ground breaking deal with a world-class global business which will introduce a common IT approach across their entire world-wide operations. It will help enable a step-change in Reuters productivity and hence competitiveness."

Find out more about Fujitsu's Financial Services

About Fujitsu Services

Fujitsu Services is a leading European information technology services company. Its business is helping its customers realise the value of information technology through the application of consulting, systems integration and managed service contracts. It serves customers in the private and public sectors across Europe including retail, financial services, healthcare and Government.

With an annual turnover of £2.46 billion (€3.59 billion), it employs over 19,000 people across 20 countries. Headquartered in London, Fujitsu Services is the European IT services arm of the US$43.2 billion (€32.5 billion) Fujitsu Group.