23 August 2007 | Antony Barton
The Reuters sourcing team was pivotal to one of the company's most complex procurement projects when it signed a 10-year, £50 million per annum IT outsourcing deal with Fujitsu this month.
Under the contract, which came into effect last week, Fujitsu will develop Reuters' internal computer systems so employees can access the company's data from anywhere in the world. Fujitsu will subcontract to a variety of suppliers such as Siemens, Xerox, BT, Dell and Microsoft.
David Lister, Reuters' chief information officer with responsibility for sourcing, said the deal should generate savings on current spend of between 20 and 30 per cent.
The global sourcing department normally negotiates deals on buying commodities, he said, adding: "This was a more complex process, not just because of the size of the contract, but because it's a packaged service where we contract the right people and technology to do the job. It's completely different from just buying servers or laptops."
He added it was fundamental that Ron Jarman, global head of sourcing, and his team considered future changes in technology and the ability to benchmark performance against a changing marketplace over a decade.