
Back office key for utility's outsourcing decision
By Tony Hallett
Published: 18 December 2003 12:50 GMT
Computer Sciences Corporation (CSC) has won a £266m seven-year contract to look after much of the IT infrastructure of National Grid Transco (NTG).
The utility is looking for greater efficiency and cost-cutting, especially with back office systems that support around 18,000 staff across the UK.
Known for its electricity transmission and distribution network across England and Wales and gas business UK-wide, NTG is the product of the merger of National Grid and Lattice Group.
A NTG spokesman said: "[This deal] in part comes out of the merger. We decided to look at outsourcing where previously we did things in-house. There will be cost savings but this is also about improving service levels."
The deal spans technology including mainframes, applications servers, desktops, help desks and telecoms services. NTG has numerous suppliers across these areas, the spokesman said.
The contract was the product of a "stringent" procurement process, led by NTG group director Steve Holliday. NTG was advised by consultants TPI.
Around 330 NGT staff will transfer to CSC in January under UK TUPE (Transfer of Undertakings Protection of Employment) legislation.
The company is involved in electricity distribution in various markets around the world.
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