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Indo Rama to outsource IT needs to Accenture

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CIOL Bureau
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NEW DELHI: Indo Rama Synthetics, a polyester manufacturer, has entered into a
seven year contract with Accenture India to outsource its IT functions. The
contract is expected to enable Indo Rama to focus on its core-competency and
increase operational efficiency by one per cent every year.

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Accenture will provide outsourcing and consultancy to Indo Rama in facilities
management, which include servers and desktops, networks and mailing system,
application development and application management. Initially Accenture will
focus on improving the quality of MIS, enhance connectivity with suppliers and
customers and enhance IT coverage especially in manufacturing area.



Presently 26 people including eight of Accenture are working in the IT
departments of Indo Rama in all the six locations, which include Butibori,
Coimbatore, Delhi, Mumbai, Pithampur and Surat. Accenture has taken on its rolls
all existing 18 employees from all the six locations of Indo Rama to re-skill
them to keep them abreast of the latest technologies and then re-deploy them to
enhance value for Indo Rama.

Speaking on the occasion, Accenture Partner Ajit Kumar said, " This is
the first outsourcing deal for Accenture in India and we will use our expertise
in enhancement of productivity, improvement in customer interface and reduction
in costs over the long term for the client."

Indo Rama has already invested around Rs 10 crore in its IT related
activities and will invest Rs two crore more depending upon the requirement.
Though the details of the deal with Accenture was not revealed, the company has
been given a mandate not to exceed IT maintenance expenditure by more than Rs
four crore per year.

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Indo Rama managing director O P Lohia said, " This contract will enable
us to make optimum use of emerging technologies and will release valuable
management time to allow us to concentrate on our core business- textiles."

Accenture is a management and technology consulting organization and has
generated revenue of $ 11.4 billion for the fiscal year ended August 31, 2001.
Outsourcing contributes around 17 per cent of its global revenues. Indo Rama is
a polyester manufacturer in India with a sales revenue of Rs 20 billion for the
year ended 2001.

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