Phones4U opts for dual supplier outsourcing deal

Mobile phone retailer takes Fujitsu and TCS on board to reduce back-office costs

TCS and Fujitsu will jointly carry out the implementation of new server technology at Phones4U

Phones4U has signed an outsourcing deal that will see the mobile phone retailer retain ownership of its hardware while bringing in an external provider to manage the infrastructure.

Under a joint agreement, Tata Consultancy Services (TCS) will manage the systems based on Fujitsu blade server technology, while the retailer will retain ownership of IT assets. The aim of the contract is to reduce growing IT costs.

The initiative will cover the firm’s two server rooms, which house its core Siebel retail trading platform, and will see TCS overseeing and managing the project while Fujitsu handles the hardware installation and integration, as well as storage migration.

The new equipment will bring in a hardware structure that supports open systems and also enables a significant reduction in operating costs, said director of IT strategy at Phones4U, Steve Johnson.

“Crucially, the technology means we can dynamically re-use capability for development and testing of new services and gives us scalability for long-term growth,” said Johnson.

The partnership also presents a test for the retailer’s supplier management capabilities, said Phones4U IT managed services director, Steve Taylor.

“The nature of this deal has allowed Phones4U to test our multi-party sourcing model in action,” said Taylor.

“Fujitsu, TCS and a couple of our other partners have worked together in a very effective way through the procurement and the implementation phases of this work. We see this as a prime example of how our sourcing model will work in the future,” he said.