Renault reorganizes IT organization

Looking to simplify and reorganize its IT operations, Paris-based car maker Renault has signed three outsourcing deals with Hewlett-Packard, Computer Sciences and Atos Origin worth a total of US$790 million.

Under a five-year, $150 million deal, HP will manage and develop the car manufacturer's global desktop computing environment and support Renault's 87,000 users in 26 countries. Renault expects to save money by standardizing its IT environments, HP said in a statement.

The contract calls for HP to manage all of Renault's PCs, workstations, local and network printers, videoconferencing and other equipment, and provide around-the-clock help desk and online Web portal support, asset and license management, and mobility products for employees that use PDAs for remote work. HP will also develop an "Expertise Center" for Renault in France to advise and support the company on future IT projects.

As part of the agreement, 160 Renault workers from around the world will transfer to HP.

"HP will work with Renault to align its technology and business practices to reduce costs and take advantage of emerging market opportunities," Pablo Sanchez-Lozano, vice president and general manager of managed services for EMEA at HP, said in the statement.

In separate moves, Renault is also outsourcing part of its IT organization to Computer Sciences Corp. and Paris-based Atos Origin.

Under the terms of a US$236 million contract, CSC said in a statement it will provide infrastructure management services, including network, midrange and mainframe support, to Renault sites in France and Spain.

"Renault's selection of CSC for one of the largest infrastructure services contracts signed in France builds upon CSC's existing outsourcing presence in the region," said CSC Chairman and CEO Van B. Honeycutt.

Under the US$404 million agreement with Renault, Atos will develop and maintain the carmakers' applications worldwide and become its preferred applications management partner.

In that deal, Atos Origin will be Renault's lead partner in developing and maintaining applications worldwide, with responsibility for maintaining more than 2,000 applications related to design, development, manufacturing, sales and marketing, and after-sales services.

In addition, Atos will also be responsible for upgrading legacy software, developing new functionality and building new applications for the automaker.

Through these outsourcing deals, Renault said in a statement, it will be able to significantly reduce its development and maintenance costs by revamping processes and optimizing relations with IT suppliers and service providers.

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