Steel firmArcelorMittalis consolidating its IT
outsourcing in western Europe as part of a move to a global IT
supply model.
IT services currently provided by a multitude of vendors will be
handed over to two global IT providers.
Following an evaluation, a decision has been made to formalise
framework agreements with Satyam
Computer Services and
Mindtree, which will deliver
services in partnership with ArcelorMittal's current European
incumbent suppliers.
The framework agreements will last until 2011. Specifics of the
services to be provided by Satyam and Mindtree will be defined
following discussions with key stakeholders, ArcelorMittal
said.
The aim of the transformation efforts is to improve the
cost-effectiveness and flexibility of the IT organisation, while
maintaining, and ultimately improving on, current processes and
service levels.
ArcelorMittal said it expected that around 70% of its currently
subcontracted activities would eventually be carried out by Satyam
and Mindtree and that its internal IT employees would focus on
"high value-adding activities".
There will be no direct ArcelorMittal job losses as a result of
the initiative. ArcelorMittal employs 310,000 staff across 60
countries.
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