British Aerospace Systems (BAe) is planning to extend its IT outsourcing contract with Computer Sciences Corporation (CSC) to integrate IT from Marconi Electronic Systems, which the aerospace giant acquired last year.
The deal will involve 1,000 former Marconi IT staff moving to CSC, which plans to manage IT operations on a transatlantic basis.
Maria Harwood, director of IT synergy delivery at BAe, said the contract will include IT systems and service delivery. The outsourcing contract will include managing mainframe and mid-range computer servers and desktops as well as helpdesks, applications and Internet services for Marconi.
Applications across BAe and Marconi include e-mail, office productivity and the SAP and Baan enterprise resource planning applications.
At the moment BAe has no plans to migrate Marconi's ERP systems, but through the outsourcing contract it wants to provide a way to share data between different systems.
Harwood said BAe will monitor the level of service from CSC using a combination of approaches including the end-to-end response time of IT systems and the delivery of applications on time and within set budgets.
"We are looking to put in place incentives [for CSC] based on agreed objectives," Harwood explained.
One area BAe is considering is measuring the benefits to the business of the IT managed by CSC.
"This is difficult to measure," Harwood said, "but it should not stop us trying."
Denis Hocking, vice president for the European group at CSC, said the 1,000 IT staff should benefit from the move to the outsourcing specialist. He said former Marconi Electronic Systems IT employees will have more opportunities to move within IT services at outsourcing specialist than if they had remained BAe staff.
The expansion builds on an established 10-year outsourcing agreement signed in 1994 between CSC and British Aerospace.
Service level metrics used to monitor CSC