Success Stories

Interested in knowing how one of the world’s largest specialty retailers reduced their IT costs by up to 50% ?

Major European Electronics Retailer operates 1,400-plus stores spanning 27 countries and employing 40,000 people. Client deals with more than 100 million customers shop in-store and online with every year.

The Retail industry has experienced significant changes as a result of Hyper-competition from an over-stored retail environment, Blurring of channels and segments driven by retailer efforts to increase market share. In midst of these challenges the retailer saw its profits decline at -1.6% YoY. The recovery path became more difficult as it was operating through lot of subsidiaries, brands & had a prominent M&A history. There IT environment was very scattered b/w various third party vendors & the in-house IT dept

The central question for the Retailer was to find a strategic partner to mitigate risk & improve efficiency by Total IT outsourcing which would enable them to concentrate their core competency. Some competitors had tried to accomplish this through traditional outsourcing contracts, only to find themselves with limited control of their environments and less-than-acceptable service levels

“We have selected HCL on the basis of its retail and European experience, strong culture of partnership and the transparency in its cost models. In a challenging retail marketplace this co-sourcing partnership will enable us to increase our IS capabilities and agility by developing standardized, flexible processes. This is a key opportunity for driving innovation and a step change in our IS capability”

- Group Finance Director of the customer

The Retailer was looking for a partner to handle application management, application development & infrastructure. They called on HCL for an innovative outsourcing solution that would reduce costs and ensure top-quality service. HCL responded with a comprehensive program which included,

• Customer retained IT Business Strategy for Business innovation & preeminent governance
• Transparent & flexible commercial model showing accelerated P&L impact
• Maximized variable cost – Value & Certainty
• Reduction in IT intensity, yet increasing IT Maturity through the co-sourcing partnership

HCL’s proven due diligence & transition frameworks help in smooth transition which also included rebadgment of 175 existing DSG IT personnel

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