Norske Skog and HP Norge have signed a global outsourcing agreement which aims to reduce information technology costs at the Norwegian paper group by 10-15 per cent. Also intended to improve the effect of Norske Skog’s IT investment by 20-30 per cent, this deal has a financial framework of roughly NOK 300 million. That figure could increase to NOK 500 million over a six-year period, with an option to extend the life of the agreement by another two years.
Norske Skog ranks as the world’s second-largest supplier of newsprint and magazine paper, owning 24 mills wholly or partly in 15 countries on five continents. The group holds 13 per cent of the global market for publication paper.
Paying per workstation
“This agreement, which we will manage, does not involve any transfer of personnel from Norske Skog,” says Kolbjørn Haarr, head of the technology solution group at HP Norge. “It’s purely a service contact which makes us responsible for infrastructure operation, with Norske Skog paying per workstation. “Integrating and standardising all IT aspects will ensure improved quality, lower costs and a better return on investment.”
Norske Skog operates around the clock, seven days a week, with several users utilising the same workstation. The deal embraces 4 600 stations, and HP will be responsible for the necessary hardware and all the operational services required.
Proud over the contract
“We’re very proud of the contract we’ve negotiated here,” says Frode Haugli, president of HP Norge. “That’s not only because of its size and scope but also because Norske Skog has sought answers to change challenges rather than hardware deliveries.
“This company is very advanced on the IT side, and wants everything delivered as a service. That provides a good example of the way customers in future will demand innovative and cost-effective IT solutions which provide a higher level of flexibility.
“I’m sure that this agreement will give us the opportunity to show HP as a global company at its very best.”
More IT for less money
Norske Skog’s global reach, with operations in different time zones, makes heavy demands on efficient technology solutions.
“After a several large acquisitions of other businesses, we’ve been in a restructuring phase with a heavy focus on efficiency gains and cost savings,” says Bassim Haj, vice president for IT at the group.
“Establishing a secure, unified and profitable operating structure will yield substantial cost savings and enhance the effect of our investment.”
Norske Skog will become more adaptable and better able to scale the provision of IT capacity to match its requirements at any given time, he notes. “To popularise a little, you can say that we’ll be getting more IT for less money – and we’ll be much more flexible,” concludes Bassim Haj.