Outsourcing Systems Unit Allows ABB to Renew its Business Focus

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Capgemini’s global approach allows ABB to reduce costs and increase focus on core areas.

“When you’re going on a long trip, the best thing is to take an experienced guide along, so you choose the right direction from the beginning. Naturally, they have to be capable of creating business value at a competitive price. In addition, Capgemini fits our company culture.”
Jens Nielsen, CIO, ABB Northern Europe

The Situation

ABB’s Business Systems unit provides critical information systems support and staff training to ABB. Services cover the full lifecycle, from the initial project to continued development and applications maintenance. Based in Sweden, Business Systems is organized as a separate ABB unit.

Even if ABB’s business was to decline, Business Systems was expected to decrease costs for IT support and improve efficiency by incorporating global best practices. Further, ABB wanted to increase its core focus on power and automation.

Having previously outsourced infrastructure to an external supplier, ABB began to look for a competent outsourcing vendor to partner with. The goal was to achieve an ideal, win-win solution for ABB as well as for the employees of Business Systems.

The Solution

ABB elected to outsource the entire IS/IT unit to Capgemini, including all assets and employees belonging to the unit. A five-year services agreement was signed for all applications development, maintenance and support services underpinned by new SLA’s. Capgemini introduced Rightshore™, its center-based delivery approach.  This included a front office in an Application Management Service Center (AMSC) in Và€sterà¥s, Sweden and a back-office in Mumbai, India. In parallel, Capgemini assisted ABB to build its CIO Office providing central governance of the entire IT operations in Sweden.

The Result

Outsourcing Business Systems to Capgemini has allowed ABB to:

  • lower applications management costs substantially
  • increase flexibility of system development activity as demanded
  • access leading industry competence as well as IT expertise
  • deploy an IT governance model through the CIO Office for ABB and its strategic partners, IBM and Capgemini.