Mölnlycke Health Care selects Capgemini for new IT outsourcing agreement

Mölnlycke Health Care AB has selected Capgemini Sverige AB (Capgemini) as its main supplier of IT services in an outsourcing agreement worth around 19 million euro over three years. Mölnlycke and Capgemini will jointly develop the IT business in Sweden while Capgemini will be locating most of the development, maintenance and application management to Mumbai in India.

Mölnlycke has been building up its IT infrastructure for several years. The new contract with Capgemini will reduce Mölnlycke's costs for development, maintenance and application management by around 25-30 percent during the contract period. The reduction is partly due to the unique and innovative outsourcing method, with closer and more flexible cooperation between the parties. The agreement includes application management, infrastructure management and service desk. Capgemini will also be assisting Mölnlycke in a number of development projects.

"Through our cooperation with Capgemini, we will obtain a partner who can not only help us cut costs significantly, but who can also help us develop the business. With lower costs for traditional IT, we can focus more on our business-driven development projects," says Olle Jonsson, CIO at Mölnlycke Health Care.

To reduce costs, Capgemini will automate and co-deliver monitoring, maintenance and management. It is estimated that about half of the services will be provided by Capgemini's office in Mumbai in India.

"The agreement with Mölnlycke is the first of its kind and makes great demands on our ability to work proactively. The delivery model requires extremely close cooperation, and we will for example have joint responsibility for skills enhancement of both our own and Mölnlycke's employees," says Henrik Sund, Nordic Regional Leader of Outsourcing Services at Capgemini.

The three-year contract begins on 1 January 2005 and contains an option for extension for a further two years. The contract does not involve any transfer of staff between the parties.

About Mölnlycke Heath Care

Mölnlycke Health Care is one of the world's leading providers of single-use surgical and wound care solutions to the professional health care sector. The surgical assortment is marketed under three brand names, BARRIER ®, Klinidrape ® and ProcedurePak TM and the wound care assortment under the brand name Tendra ®.

Total annual sales are at present app. MEUR 500 and the group has about 4000 employees. Manufacturing takes place in five factories located in Finland, Belgium, the Czech Republic, Thailand and Mexico. Sales and marketing is carried out in four market areas; Europe/Middle East/Africa, North America, Latin America and Asia Pacific, altogether comprising 25 subsidiaries and a number of international representation offices. Mölnlycke Health Care started operations as an independent company in 1998 and the major shareholders are Nordic Capital and the Swedish 6 th AP fund.

About Capgemini

Capgemini, one of the world's foremost providers of Consulting, Technology and Outsourcing services, has a unique way of working with its clients, which it calls the Collaborative Business Experience. Through commitment to mutual success and the achievement of tangible value, the company helps businesses implement growth strategies, leverage technology, and thrive through the power of collaboration. Capgemini employs approximately 60,000 people and reported 2003 global revenues of 5.754 billion euros.

More information about individual service lines, offices and research is available at www.capgemini.com