O2 shifts categories to Germany

2 February 2010

2 February 2010 | Jake Kanter

O2’s UK procurement team is to bring an outsourcing deal back in-house after two of its major spend categories were moved to Germany.

The telecoms company has shifted handset and technology spend to its parent company Telefónica’s global sourcing organisation in Munich.

Telefónica will carry out contract negotiations in these categories and aims to use its greater spending power to secure better prices.

O2’s UK purchasing department will source indirect categories, including marketing and professional services. It will also take full control of other spend areas including human resources services, property and facilities management after ending its £350 million procurement outsourcing contract with 4C Associates last year.

An O2 spokeswoman would not reveal how much the company hoped to save as a result of the changes, but stressed that no jobs would be lost or moved.

“We have centralised the sourcing for technology and handsets to take advantage of Telefónica’s global buying power. This represents a natural evolution of the Telefónica buying process,” she said.

“Critical to the success of this approach is effective engagement with business planning processes.”

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