Centrica expected to reduce application maintenance costs by 50%

Fujitsu Services, one of Europe’s leading IT services companies, today announced a £2.1 million outsourcing contract for the next 3 years with Centrica. The new contract is to manage a portfolio of applications supporting British Gas’s residential and business customers.   Under the terms of the contract Fujitsu will provide 365x24 application maintenance and support services. 

As part of the contract Fujitsu will provide Centrica with an Applications Value Assessment, a unique Fujitsu approach that enables a company to identify the relative value and viability of its applications. The approach uses portfolio management techniques and tools to optimise the support and maintenance service.  For example, applications that are identified as being mature; delivering high but declining value would be re-designed to run at lower costs or replaced. This approach typically leads to cost reductions of between 10 and 20%.

The agreement comes as part of the latest chapter in a 30 year history in supporting Centrica and enhancing its IT systems. The applications managed by Fujitsu operate on a wide range of technologies, including VMS, UNIX, Visual Basic and Windows, and are all legacy systems requiring specialist technical skills. Centrica expect to reduce their application maintenance costs in this area by 50% with the support of Fujitsu.

Neil Coop, senior commercial manager, Centrica, says, “We are delighted to have appointed Fujitsu to continue to help us modernise our legacy systems using its extensive skills and resources in application management and development. In its 30 year relationship with Centrica Fujitsu has been responsible for providing a broad range of solutions and services, using its comprehensive range of business and technical skills. In the process, Fujitsu’s employees have amassed years of experience and knowledge of both Centrica’s energy business and its underlying technology.”

Anne Stokes, business unit director for Fujitsu Services commented “Centrica is taking a far sighted look at its applications portfolio and planning for the future. Centrica will take better informed decisions on the evolution of its applications and ensure they are properly aligned with their business strategy. Fujitsu Services is proud to be helping one of our most valued clients to drive its strategic goals in this way.”