Capgemini has renewed its business process outsourcing (BPO) service contract with steel giant, BlueScope Steel.
The contract was set to expire in March and has been extended to December 2016.
Under the deal, Capgemini will manage and provide human resources administration, payroll, accounting and procurement support services to BlueScope’s Australian and New Zealand business.
Capgemini CEO, Paul Thorley, said his company was responsible for BlueScope’s original move to an outsourced model in April 2002. The renewal was granted after an extensive tender process.
“It’s a very significant deal,” Thorley said. “We were put under pressure to find additional savings to continue the relationship and we stepped up.”
He said while the BlueScope contract would have an Australian ‘centre of gravity’, various services would be outsourced overseas pending discussions.
The Global Financial Crisis had catalysed a rise in interest for BPO service providers like Capgemini, Thorley said. But he admitted Australia’s economic resilience had reduced the potential for outsourcing business.
“The conversation is starting again,” he said. “We have one serious client in the pipeline, but I wouldn’t say there’s a huge pipeline of deals across the market.
The deal comes after Capgemini added 4000 staff to its operations in India.