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Britannia to outsource IT to HP

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CIOL Bureau
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BANGALORE, INDIA: In a move that signals the increasing acceptance of third party IT outsourcing among Indian enterprises, food major, Britannia, has selected Hewlett Packard (HP) India to implement comprehensive IT outsourcing. Both the companies have inked a three-year contract.

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In a media briefing here, Vinita Bali, managing director, Britannia Industries, said that the driver for outsourcing was to gain better value from IT and not for the sake of cost benefits. "We wanted our IT to boost the value of what we do and increase productivity and bring about business transformation."

According to the deal, HP would provide infrastructure solutions, SAP application service and support, helpdesk, onsite and offsite support, and network and IT management. Britannia chose HP after a six-month evaluation. The company has an internal IT team that would continue to be intact and would be involved in orchestrating and coordinating the IT operations, said Bali. Britannia spends around 0.5 per cent of its total revenues on IT every year.

Balu Doraisamy, managing director, HP India felt that deals like these bode well for the domestic outsourcing industry. "Large enterprises in India have been looking at IT outsourcing in the last three years. Now the growth has picked up with customers looking for new technologies for deriving business intelligence and productivity gains." Around 20 per cent of HP's Indian revenues come from services. So far, HP is involved in around 15 comprehensive outsourcing deals including Bank of Baroda and Proctor &Gamble.

The domestic outsourcing industry in India has been on the rise in the last few years and has seen big-ticket deals like IBM-Bharti Airtel and TCS-SBI.

A recent Gartner survey conducted among more than 1,400 CIOs worldwide showed that IT budgets in India had the highest growth of 16.19 per cent, compared with an average of 3.16 per cent in the rest of the world.

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