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Services Briefs: Procter, Getronics, E-gov

Services Briefs: Procter, Getronics, E-gov

No one vendor for Procter

Procter & Gamble's quest for a multibillion-dollar IT and business operations outsourcing deal took yet another twist last week, as the consumer products maker disclosed that it is giving up on trying to reach an agreement with a single vendor. P&G had been negotiating a contract with EDS that was expected to be worth as much as $US10 billion over 10 years. But P&G spokeswoman Linda Ulrey said the company now plans to pursue a series of smaller deals with multiple outsourcing vendors. "We're going to continue to look at outsourcing opportunities," she said. "What we've done is modify our approach."

Getronics to lay off 1,400

Getronics, one of Europe's largest IT services companies, will make 1,400 staff redundant to cut costs. The company has also issued an earnings warning. This second round of job cuts at the Amsterdam company will mainly involve operations in Italy, the Netherlands, Spain, France and Mexico and should be completed by June next year, Getronics said in a statement. Last year, 1,450 employees were made redundant in Getronics locations around the world. The cuts and other cost-saving measures should save Getronics $85 million ($A153 million) per year.

E-gov services get the nod

Senator Richard Alston, the Minister for Communication, Information Technology and the Arts, last week launched a strategy designed to outline the direction and priority of future e-government services. The program will focus on delivering citizen-focused services by integrating related services. The announcement coincides with the release of a study into the demand for e-government services, which found that 36 per cent of users gain significant benefits from access to online services. Nineteen per cent of users estimated cost savings per interaction of less than $10, while at the other end of the spectrum, 14 per cent estimated costs savings of more than $25.


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