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£10 Million IT Transformation at London Electricity

Completed Under Budget and Ahead of Schedule

23 January 2002

London Electricity is reporting important gains in cost effectiveness following the completion six months early by Cap Gemini Ernst & Young UK plc of a £10 million project to transform the gas and electricity supplier’s entire IT infrastructure. The project involved consolidating the IT systems used by its recent acquisition SWEB with those at London Electricity, in order to support the delivery of a consistent and high quality service to customers and staff.

The project involved modernising and upgrading hardware and systems software, migrating from an Amdahl to an IBM mainframe, relocating systems from London to Plymouth and knowledge transfer. Cap Gemini Ernst & Young managed London Electricity systems and staff on an outsourcing basis throughout the transition. Scheduled by London Electricity to take 18-24 months, the project was completed by Cap Gemini Ernst & Young in just under 12 months.

Bernard Cottrant, Group Technology and Service Director at London Electricity, said: ’ Cap Gemini Ernst & Young did a very good job in managing this important contract and by their ability to work effectively with our own teams. I am naturally happy that the project has been completed within budget and ahead of schedule.’

London Electricity reports several key benefits as a result of working with Cap Gemini Ernst & Young on its IT transformation:

  • A reduction in ongoing operating costs of more than 15% per year.
  • A smooth and seamless move from old to new systems and locations, with no disruption to the business and no degradation of IT service during the transition.
  • Sustained increase in measured IT service levels as a result of applying Cap Gemini Ernst & Young best practice.
  • Highly effective transfer of knowledge, managed by Cap Gemini Ernst & Young, from the old London data centre to the new one in Plymouth.

As well as the mainframe migration, the project involved the upgrading and standardisation of over 50 midrange network servers. The applications supported by systems within the project cover all business and customer-facing systems for LE Group’s gas and electricity supply businesses, including customer databases, customer services and billing. Users include all 4,000 LE Group staff including those at its call centres in Exeter and Sunderland.

Herve Griffon of Cap Gemini Ernst & Young’s Global Energy, Utilities & Chemicals Sector, said: ‘I am delighted with our success at London Electricity. Gas and electricity companies worldwide are responding to deregulation by seeking new efficiency and competitiveness and our specialist Energy, Utilities & Chemicals Unit, with its global knowledge and experience of the issues and opportunities facing the sector, is well equipped to help them do that.’

Herve Griffon added: ‘2001 was an outstanding year for our Global Energy, Utilities & Chemicals order book, with big wins in the UK at Powergen and United Utilities as well as London Electricity, and in Canada at Ontario Power Generation and Bruce Power. All the signs point to the needs of energy and utility companies for third party help in business and IT consultancy continuing and even accelerating in 2002.’

Following the successful completion of the systems transformation project, the relationship between London Electricity and Cap Gemini Ernst & Young is continuing into 2002 with a project to install new applications software in the customer service and customer relationship management areas.

-ENDS-

About Cap Gemini Ernst & Young

Cap Gemini Ernst & Young is one of the largest management and IT consulting firms in the world. The company offers management and IT consulting services, systems integration, and technology development, design and outsourcing capabilities on a global scale to help businesses continue to implement growth strategies and leverage technology in the new economy. The organisation employs about 57,000 people worldwide and reports global revenues of more than 8.5 billion euros (2000 pro forma).

About Energy, Utilities & Chemicals Global Sector

With more than 5,000 dedicated consultants engaged in Energy, Chemicals Mining and Utilities projects across Europe, North America and Asia Pacific, the Group’s Global Sector Unit - Cap Gemini Ernst & Young Energy, Utilities & Chemicals - serves the business consulting and information technology needs of many of the world’s largest players of this industry.

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

For more information, please contact:

Philippe Guichardaz
Cap Gemini Ernst & Young
Tel: +33 (1) 47 54 50 45
philippe.guichardaz@cgey.com

Philippe Coquet
Cap Gemini Ernst & Young Energy, Utilities & Chemicals
Tel: +33 (1) 49 67 45 83
philippe.coquet@cgey.com