Vodafone, the world’s largest mobile operator, is still in the process of implementing its One Vodafone programme. The initiative, which started in 2005, is intended to boost revenues while simultaneously reducing operating expenses to fiscal 2004 levels during fiscal 2008.
This objective led the organisation to sign a seven-year outsourcing deal with EDS and IBM in November last year to undertake all its application development and maintenance work. EDS will cater to the needs of the UK, Germany, Hungary and Dutch subsidiaries, while IBM will look after, among others, Spain and Australia.
The contract is expected to cut between 25 and 30 per cent from the company’s £560 million annual bill within three to five years and the focus is expected to be on writing and supporting code for bespoke CRM and billing systems.
But Vodafone also intends to undertake a consolidation programme in the year ahead, which will see it reduce the number of suppliers it works with in order to exploit economies of scale and cut support costs.
It is also in the process of consolidating its European data centres and has created a shared services organisation to develop and run a range of European services. For example, the centre now hosts the Vodafone live! portal for seven of the group’s mobile operating subsidiaries, its joint venture in Italy and two markets where it partners with third-parties.