Rio opts for CSC in $70m outsourcing deal
SOURCE: Australian IT
DATE: Oct 28th, 2008
ARTICLE
RIO TINTO has signed off on one of its biggest outsourcing deals, selecting CSC for a five-year, $70 million contract to provide support services for about 25,000 users.
Rio appointed global strategic adviser The Hackett Group to audit the bids and decide which would deliver the best return on investment.
CSC is understood to have taken on provision of service desk and desktop services across Rio’s operations in the Asia-Pacific region and the Americas, which covers about 25,000 users. The services will be delivered from CSC’s local operations.
The deal does not include Rio’s large businesses in Europe and the Middle East
The mining giant declined to comment on its outsourcing strategy and future technology plans, but it is understood that more functions have been earmarked for outsourcing in the next year as it looks to slash technology costs.
The deal follows the recent decision to award a contract, reportedly worth $50 million, to Indian outsourcer Infosys to perform application development and maintenance work and offshore some back-office business processes to India.
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