Investigating Outsourcing

Feb 28 2011   10:48AM GMT

Centrica outsourcing shake-up taking shape

KarlFl40 Profile: KarlFl40

Cloud Computing

Back in December I revealed that Centrica was shaking-up its outsourcer pack.

T-Systems was being replaced in the datacentre and on the desktop by HP and Fujitsu respectively. Meanwhile T-systems is focussing on SAP services in the cloud and the development of smart grid technology.

Today sees the first of these deals officially announced. Centrica is paying $400m to HP in exchange for datacentre services including building a utility based private cloud.

This is part of a programme of change at Centrica which will lower costs, make it more reactive and lower its carbon footprint.

Perhaps more interesting is the way the market is going. HP and Fujitsu, which is being given the desktop contract, are big suppliers with economies of scale. The commoditisation of datacetre and desktop work might mean the big suppliers start replacing more niche players.

T-Systems is part of Deutsche Telekom, but in the UK is quite a small player. The higher value SAP services and smart-grid technology work might be good in the long-term.

But in the short term it might hurt. The Centrica deal was about T-Systems UK’s biggest.

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