ArcelorMittal consolidates IT outsourcing in Europe

Steel firm ArcelorMittal is consolidating its IT outsourcing in western Europe as part of a move to a global IT supply model...

Steel firm ArcelorMittal is 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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