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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.

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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