WHSmith signs £37m outsourcing contract with Fujitsu for next seven years

WHSmith, the UK 's leading book, news, magazine and home stationery retailer, has awarded a seven year IT outsourcing contract renewal to Fujitsu Services, one of Europe 's leading IT services companies. The contract, worth £37 million, means that Fujitsu will continue to provide the 544 store strong retailer with a suite of outsourced IT services.

Following the appointment of new chief executive, Kate Swann, in November 2003, the company underwent a major organisational review to improve efficiency and customer focus within the organisation. Part of the review was to challenge the current mode of IT service delivery.

Information technology director, Peter Swann, comments: "Fujitsu had met the objectives that were set at the time of the original outsourcing agreement signed in 2000. However, the changes in our business meant that we had a fundamentally different set of requirements, and I challenged Fujitsu to come up with proposals to address these. We were looking for innovation in the way that service was delivered, and commitment to driving innovation and efficiency across the life of the contract."

Dr Mark Dorgan, European retail partner at Fujitsu Services, comments: "Our knowledge of the operations of WHSmith enabled us to propose a series of transformation projects that will deliver step change in efficiency and service quality.

"Fujitsu's management of outsourcing relationships has evolved since 2000, and our proposed third generation engagement model convinced WHSmith that we would work closely with them to drive continuous improvement in service to the business."

The contract includes the provision of end user services, including the rollout of new desktops and managing exchange and intranet services. A revised service delivery management structure based upon IT Infrastructure Library principles, driving best practice service in a fast moving retail environment, has also been incorporated.

Fujitsu provides WHSmith with data centre hosting services through the management of its estate of mainframe, UNIX and Wintel servers, in addition to a service desk function, providing a single point of contact for all head office users.

Peter Swann, further comments: "Fujitsu has a clear understanding of what is important to our business and its response to our changing requirements has allowed us to continue to entrust the management of our IT delivery to Fujitsu, in a time of critical change in our organisation."