After completing the successful implementation of new it systems at its dutch back-office operations usg people is set to take further steps to structurally reduce operating costs. The measures involved will deliver a structural improvement in the operating result of € 27 million on an annual basis. This will allow usg people to benefit from the it investments it has continued to make over the past few years, despite the crisis period.

The use of new technology, including a completed large-scale IT project for the Dutch back office as well as ongoing digitisation of the distribution channel, is allowing USG People to conduct its business more efficiently and cost-effectively. This has led to a permanent reduction and greater flexibility in the cost base, thus structurally strengthening profitability.

Following an intensive two-year programme a new computer system for the back-office processes was successfully recently taken into service, allowing support services to the operating companies to be carried out more efficiently and effectively. The successful implementation of this project means that job cuts at the back office can be realised more quickly than had been projected. In addition outsourcing of the hosting as well as workstation and infrastructure maintenance operations will make IT costs even more flexible.

In addition there will be further reductions in operating costs at the Dutch operating companies. The commercial organisation will be structured more effectively in tandem with more efficient distribution and back office processes. This means that the number of support staff will be reduced and services will be provided out of fewer but larger offices.

The planned measures mean job cuts equalling 360 of the 3,900 FTEs and the closure of 34 of the 614 offices in the Netherlands. The existing activities of these offices will be consolidated with those of nearby offices in such a way as to guarantee the continued coverage of the network in all regions. A provision of around € 16 million will be taken in the second quarter to cover the measures, consisting of a provision of € 13 million for redundancies and a € 3 million provision for the closure of offices. In addition a one-off charge of € 3 million will be taken in the second half of the year for accelerated depreciation of assets and outsourcing-related migration.

USG People expects to realise € 11 million in cost savings as early as the second half of 2011. From 2012 there will be a structural improvement in the cost level of € 27 million annually which will lead to a further strengthening of the profitability of the Dutch operation.

Source:http://www.reuters.com/article/2011/07/07/idUS154845+07-Jul-2011+HUG20110707

IT Sourcing Europe, a UK-based nearshore IT outsourcing (ITO) research and advisory company, has recently closed its Dutch IT Outsourcing and In-House Software Development survey 2010 aimed at comparing and contrasting the behaviors among the two types of the Dutch companies – those that outsource their software development and those that develop their IT solutions within their own house.

The survey was completed by 167 outsourcing and 289 non-outsourcing companies representing all of the major verticals such as software/web development, banking and finance, hospitality, telecommunications etc.

According to the survey findings, unlike the Dutch outsourcing companies who mainly outsource to reduce operating costs and speed up time to market, the non-outsourcers mentioned different factors likely to drive their decisions to transfer software development to a 3d party in the future.

Namely, 31% of the surveyed companies admitted the likelihood to outsource software/web development, if they can’t find appropriate IT resources/specific skills within the Netherlands; 21% of companies said they would outsource if they need faster time to market via flexibility and scalability; 17% will outsource if they have to free in-house resources for more critical business needs; 14% will outsource to leverage operating costs, 10% will outsource if their revenues fall dramatically and they need to cut IT budgets; and 6% – if they decide to launch 24/7 operations.

Only 1% of Dutch companies said unambiguously they would never ever outsource their software development function.

Source:http://www.pr.com/press-release/269773

Deutsche Telekom’s service subsidiary T-Systems has added the Dutch electronics firm Philips to its Netherlands customer base.

T-Systems will provide global data centre and SAP support via a private cloud infrastructure running on a private secure network that links Philips data centres in the Netherlands, US, Europe, Asia and South America.

Some 185 Philips staff will join T-Systems. Financial details were not disclosed.

Philips CIO Maarten de Vries said Philips would in future operate its IT on a pay as you go basis. “This way we can draw on resources dynamically as necessary while paying only for the computer and storage resources we actually use. This will enhance our flexibility and lower our costs,” he said in a statement.

The Netherlands has been a hot market for T-Systems. It recently signed a €1bn outsourcing deal with Anglo-Dutch oil firm Shell, and with brewer Heineken, for an unspecified value.

It also took over some 90 European clients from SAP, making it the top supplier of IT to SAP users in Europe.

Source: http://www.computerweekly.com/Articles/2009/12/07/239612/philips-in-pay-as-you-go-it-deal-with-t-systems.htm

The Third Indian Dutch Innovation Circle meeting (INF BPI/KIT) is scheduled for Thursday 10 December 2009 with the following theme:

ICT Offshoring: from hype to conscious decision and its consequences for the Netherlands.

During the Innovation Circle’s meetings we aim to discuss a number of issues from different experiences and perspectives in order to generate new ideas and inspiration.

Consequently our speakers have diverse backgrounds and experience. We have invited the following speakers:

- Eelko van Leeuwen (IST Sourcing Manager Fortis);
- Paul Tjia (GPI Consultancy);
- Jamuna Ravi (VP Europe, Infosys).

Location and time
The meeting will take place in the Mauritszaal at the Royal Tropical Institute, Mauritskade 63 in Amsterdam. The doors open from 3.30pm, which gives you the opportunity to meet the other participants. The first speaker will begin at 4.00pm. You are invited to stay for drinks and for Indian snacks as well as exchanging ideas from 6.15pm.

Your investment
Participation is € 75 (excl. VAT) per participant.

Registration
To register please email the following details to IMC@kit.nl:

Name participant;
Company name;
Position of participant;
Address contact details