DuPont: IT Outsourcing Provides the Flexibility for Change

DuPont is one of the world’s leading and most innovative science corporations. Operating in 70 countries and with a workforce of over 60,000, it offers a wide range of products and services in a number of diverse markets including: agriculture;
electronics; transportation; and apparel. Its product portfolio includes a number of internationally recognized brands such as Corian®, Tyvek® and Kevlar®.

Changing Business Model

In 1997 DuPont’s business model was changing, DuPont was a chemical and energy company that wanted to transform themselves into a science company. Fierce global competition in many of its markets was driving the strategy to change through joint ventures, IPOs, acquisitions and divestitures.

DuPont needed an IT partner that could provide the IT flexibility required for these changes whilst managing the impact this would have throughout the organization.

DuPont expected its IT provider to deliver cost reductions for both operations and applications maintenance, as well as improving productivity, the speed of delivery and the value of its IT investments. In short, a partner was needed to support all new and existing critical IT functions thereby enabling DuPont to focus more clearly on both its core business activities as well as its strategy for significant change.

IT Outsourcing Alliance

In 1996, the DuPont IT Alliance was announced – a collaborative partnership between DuPont, CSC and Accenture, each organization having clear, delineated roles and responsibilities.

CSC signed a $4 billion, 10-year IT outsourcing contract in 1997 which remains one of the largest and most innovative technology agreements in history. The agreement involved the transition of 2,600 IT employees from 12 countries and included the support of services in over 40 countries spanning the entire IT lifecycle: networks; messaging and groupware; midrange; mainframe; help desk; distributed systems; and engineering.

As well as managing over 55,000 desktops, workstations and servers worldwide, CSC operates and supports DuPont’s extensive telecommunications network. CSC also handles DuPont’s global applications such as payroll, finance and human resources, as well as key applications specific to DuPont’s strategic business units.

Flexibility Drives Performance, Results

Since 1997 DuPont has relentlessly pursued its development strategy and has engaged in $25 billion worth of mergers, acquisitions and divestitures. CSC provided the flexibility and variability required by DuPont during this mission. CSC has facilitated multiple transitions of people, business systems and technology while managing the inevitable changes that this has brought to DuPont’s core businesses.

Throughout this time the relationship has remained strong and CSC has become a highly trusted business partner. This was emphasized in December 2005 when the current contract was extended for a further seven years and seven months, with an estimated value of $2 billion. DuPont’s key outsourcing objective to deliver reduced costs for its IT operations and applications maintenance has also been achieved at a rate of between six and eight percent lower than the projected baseline.

In addition to cost savings, and an enabling IT strategy, many other key results have been delivered to DuPont:

• Management and execution of 23 major SAP business change programs

• SEI Level 3 maturity rating for the life-cycle portfolio of management services achieved ahead of schedule - resulting in major process and quality improvement sooner than expected

• Migration from multiple email systems to one common platform for 55,000 users improving efficiency of the workforce and reducing costs by consolidating multiple systems and licenses

• The range and flexibility of services and solutions to support varying business situations broadened

• Independently benchmarked improvements in overall performance and customer satisfaction to ensure the quality of services delivered and focus on continual improvement

• Infusion of skills and best practices, including adoption of CSC’s World Sourcing components providing a flexible, 24x7x365 workforce at variable cost

• Improved quality and time-to-market through the integration of offshore outsourcing into the standard operating model

Related Information

Read more about CSC's Chemical, Energy & Natural Resources business.

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