Network Rail timetables key outsourcing move

Network Rail to sign multi-million pound IT outsourcing deal

Network Rail is to outsource significant parts of its IT infrastructure in a multimillion-pound deal.

The organisation will retain control only of services that affect its core business. It is to appoint a third party to manage enterprise operations, computer systems and network services at 1,200 sites.

Network Rail’s goal is improved service, but it also expects savings.

‘Keeping true to our origins as a railways maintenance and engineering company, we will retain core IT activities that are important to the company’s strategic objectives,’ said a Network Rail spokesman. ‘Non-core activities will remain externally provided or be outsourced.’

Core activities include Network Rail’s service centre, operations management, technical design and application support.

The organisation has shortlisted suppliers and will make its selection later this year.

Focusing on core activities while outsourcing network services and IT infrastructure is increasing among large organisations, says Forrester analyst Euan Davis.

‘This is a sensible deal as it will allow Network Rail to focus on what really counts, such as rail management, signalling and track maintenance,’ he said. ‘Centralising its core services will also simplify them, reducing management overheads and costs.’

Independent rail expert Christian Wolmar says the decision fits in with its strategy of focusing on core activities, such as the insourcing in 2004 of IT activities related to track maintenance.