August 28, 2008

ArcelorMittal takes Indian firms for global IT supply model

ArcelorMittal announced that it has undertaken a detailed review of its IT subcontracting activities in Western Europe and is moving towards a more global IT supply model. This includes efforts to consolidate sub contractors activities, currently provided by a multitude of vendors, with two global IT providers.

After an in depth evaluation process, the decision has been made to formalize Framework Agreements with Satyam Computer Services and Mindtree Limited, who will deliver services in combination with their European partners for this work. The Framework Agreements are valid until end 2011. Specifics of the services to be provided by these companies will be further defined following discussions with key stakeholders.

The release said that “The objective of these transformation efforts is to improve the cost effectiveness and flexibility of the IT organization, whilst maintaining current processes and service levels. It is expected that approximately 70% of the currently subcontracted activities in the scope of this initiative will be carried out by the new vendors, allowing internal ArcelorMittal IT employees to focus on high value adding activities. There will be no direct ArcelorMittal job losses as a result of this initiative.”