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Author: Dominique Raviart
Dutch banking group ING has granted preferred-supplier status to Accenture, Atos Origin, Getronics and KPN for the outsourcing of workplace service provision, which includes the installation, maintenance and support of desktops, laptops, printers and telephones. The combined value of the deal is expected to reach €800m over five years. 550 staff will transfer to Atos Origin, Getronics and KPN.
The ING outsourcing saga continues. In early November 2005 ING announced its plans to cut 500 jobs, end contracts with 1,400 external staff and transfer 2,200 others through outsourcing contracts. The Dutch bank is aiming for total cost savings of €190m in 2008.
Since then, ING has announced a €200m six-year application development and management contract with LogicaCMG that will involve the transfer of 600 staff. In May 2006, ING selected Astron in a document processing and BPO contract that is also sizeable (€400m, seven years) and that also involves a massive staff transfer (700 employees).
ING will be providing more details about these contracts once they have been signed. For now, the company highlights that under the contracts, the "integrator holds responsibility for the co-ordination of the service provision and the alignment between demand and supply". This sounds ambitious or even mysterious, but we suspect it is more a fine-tuning of the selective outsourcing approach blended with a consortium approach, rather than a radical change in the outsourcing model. We will be further commenting on this series of contracts once we have more details.
A final word about the selected players: in recent contracts, we noticed the absence of local players in the Netherlands - with the exception of Anglo-Dutch LogicaCMG - to the benefit of Indian players and US giants such as Accenture. Franco-Dutch Atos Origin and Dutch Getronics are now part of the coming deals. Nevertheless, local players such as Ordina (Dutch) and Capgemini (French, with significant Dutch business) were not mentioned. Many Netherlands-based multinationals clearly now favour international credentials and references rather than local presence for their large outsourcing contracts.
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