CSC and Dupont
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Providing 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- recognised brands such as Corian®, Tyvek® and Kevlar®. The Challenge 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 divestures. DuPont needed an IT partner that could provide the IT flexibility required for these changes whilst managing the impact this would have throughout the organisation. As well as broadening the range and flexibility of the services and solutions supporting the ever-changing business, 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. The Solution In 1996, the DuPont IT Alliance was announced – a collaborative partnership between DuPont, CSC and Accenture, each organisation having clear, delineated roles and responsibilities. CSC signed a $4bn, 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 including SAP R/2 and SAP R/3 which are specific to DuPont’s 23 strategic business units. The Results Since 1997 DuPont has relentlessly pursued its development strategy and has engaged in $25bn worth of mergers, acquisitions and divestitures. CSC provided the flexibility and variability required by DuPont during this mission and has facilitated multiple transitions of people, business systems and technology whilst 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 emphasised 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 e-mail systems to one common platform for 55,000 users improving efficiency of the workforce and reducing costs by consolidating multiple systems and licenses; D U P O N T C A S E S T U D Y “We’re a $30 billion company, but the transformation resulted in $60 billion worth of portfolio shifts. We knew in 1997 the task would be big, but we didn’t expect $60 billion.” Bob Ridout, Vice President and CIO, DuPont “CSC is proactive.They understand our goals and objectives and fit in well with our culture.They’re dedicated to our success. Most importantly, I trust them.” Bob Ridout, Vice President and CIO, DuPont
Transcript of CSC and Dupont
Providing the Flexibility for Change
DuPont is one of the world’s leading and mostinnovative science corporations. Operating in 70countries and with a workforce of over 60,000, itoffers a wide range of products and services in anumber of diverse markets including: agriculture;electronics; transportation; and apparel. Its productportfolio includes a number of internationally-recognised brands such as Corian®, Tyvek® and Kevlar®.
The Challenge
In 1997 DuPont’s business model was changing,DuPont was a chemical and energy company thatwanted to transform themselves into a sciencecompany. Fierce global competition in many of itsmarkets was driving the strategy to change throughjoint ventures, IPOs, acquisitions and divestures.DuPont needed an IT partner that could providethe IT flexibility required for these changes whilstmanaging the impact this would have throughoutthe organisation.
As well as broadening the range and flexibility of theservices and solutions supporting the ever-changingbusiness, DuPont expected its IT provider to delivercost reductions for both operations and applicationsmaintenance, as well as improving productivity, thespeed of delivery and the value of its ITinvestments. In short, a partner was needed tosupport all new and existing critical IT functionsthereby enabling DuPont to focus more clearly onboth its core business activities as well as its strategyfor significant change.
The SolutionIn 1996, the DuPont IT Alliance was announced – a collaborative partnership between DuPont, CSCand Accenture, each organisation having clear,delineated roles and responsibilities.
CSC signed a $4bn, 10-year IT outsourcing contractin 1997 which remains one of the largest and mostinnovative technology agreements in history. Theagreement involved the transition of 2,600 ITemployees from 12 countries and included thesupport of services in over 40 countries spanningthe 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 operatesand supports DuPont’s extensivetelecommunications network. CSC also handlesDuPont’s global applications such as payroll, financeand human resources, as well as key applicationsincluding SAP R/2 and SAP R/3 which are specificto DuPont’s 23 strategic business units.
The Results
Since 1997 DuPont has relentlessly pursued itsdevelopment strategy and has engaged in $25bnworth of mergers, acquisitions and divestitures.CSC provided the flexibility and variability requiredby DuPont during this mission and has facilitatedmultiple transitions of people, business systems andtechnology whilst managing the inevitable changesthat this has brought to DuPont’s core businesses.Throughout this time the relationship has remainedstrong and CSC has become a highly trustedbusiness partner. This was emphasised inDecember 2005 when the current contract wasextended for a further seven years and sevenmonths, with an estimated value of $2 billion.
DuPont’s key outsourcing objective to deliverreduced costs for its IT operations and applicationsmaintenance has also been achieved at a rate ofbetween six and eight percent lower than theprojected baseline. In addition to cost savings, andan enabling IT strategy, many other key results havebeen delivered to DuPont
• Management and execution of 23 major SAPbusiness change programs;
• SEI Level 3 maturity rating for the life-cycleportfolio of management services achieved aheadof schedule - resulting in major process andquality improvement sooner than expected;
• Migration from multiple e-mail systems to onecommon platform for 55,000 users improvingefficiency of the workforce and reducing costs byconsolidating multiple systems and licenses;
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“We’re a $30 billion company,but the transformation resultedin $60 billion worth of portfolioshifts. We knew in 1997 thetask would be big, but we didn’t expect $60 billion.”
Bob Ridout,Vice President
and CIO, DuPont
“CSC is proactive.Theyunderstand our goals andobjectives and fit in well withour culture.They’re dedicated toour success. Most importantly,I trust them.”
Bob Ridout,Vice President
and CIO, DuPont
• The range and flexibility of services and solutionsto support varying business situations broadened;
• Independently benchmarked improvements inoverall performance and customer satisfaction toensure the quality of services delivered and focuson continual improvement;
• Infusion of skills and best practices, includingadoption of CSC’s World Sourcing componentsproviding a flexible, 24x7x365 workforce atvariable cost;
• Improved quality and time-to-market throughthe integration of offshore outsourcing into thestandard operating model.
Why CSC
The flexibility CSC has provided in meetingDuPont’s ambitious goals for growth, anddiversification has been the key to a long andsuccessful relationship. Being able to accommodatesuch goals whilst at the same time significantlyreducing IT costs and improving the value of ITinvestments has led to an excellent workingrelationship with considerable trust being builtbetween the two companies.
The success and longevity of the relationship canalso be attributed to a number of other key reasons:
• CSC’s governance model combines the businessexpertise of DuPont and its own technicalexpertise, aligning managers throughout theorganisations who are responsible for jointplanning and execution;
• CSC utilises a three-level approach for measuringand documenting client satisfaction whichensures the constant delivery of improvements tomajor services;
• CSC balances the use of front-line andoffshore/near-shore resources to provide aneconomic, efficient and effective work model forDuPont;
• CSC provides a secure IT environment incompliance with DuPont’s stringent securityguidelines, this includes 24x7 monitoring of allDuPont networks;
• CSC’s services are constantly benchmarkedagainst external industry measurements, thisensures that services are kept in line with bestpractices;
• CSC uses its extensive knowledge management toensure that the delivery of DuPont’s serviceremains innovative and delivers maximumbenefit.
• CSC is a people-oriented company; its 93%retention rate for DuPont-transitioned staff isabove the benchmark for best practice.
CSC’s relationship with DuPont is a fine illustrationof CSC’s approach to Dynamic Sourcing:accommodating and exploiting change; weavinginnovation and continuous transformation into thefabric of a long-term relationship; and collaboratingsuccessfully with other IT partners.
Computer Sciences CorporationFor dynamic, innovative, results-driven sourcing solutions, talk to CSC.Visit: www.csc.com Phone: +44 (0)1252 536421 Email: [email protected]
Worldwide CSC HeadquartersThe Americas2100 East Grand AvenueEl Segundo, California 90245United States+1.310.615.0311
Europe, Middle East, AfricaRoyal PavilionWellesley Road, AldershotHampshire, GU11 1PZUnited Kingdom+44(0)1252.534000
Australia/New Zealand26 Talavera Road Macquarie Park NSW 2113 Australia+61(0)2.9034.3000
Asia139 Cecil Street#08-00 Cecil HouseSingapore 069539Republic of Singapore+65.6221.9095
Designed and produced by CSC’s EBD Marketing and Production Departments.© 2006 Computer Sciences Corporation. Printed in U.K. All rights reserved.
“Information technology playsan increasingly important role in fulfilling DuPont’s vision to be the world’s most dynamicscience company and instreamlining our global business operations.”“We recognize CSC’scommitment and flexibility to meet our business and IT productivity goals.This demonstrates DuPont’sexpectations of continued valuefrom our relationship.”
Bob Ridout,Vice President
and CIO, DuPont
DuPont wants to work "with good, solid companies"and CSC is a "winner" with anoutstanding track record" and"competitive pricing.”
Maryann Holloway, Director
of Global Alliance Management
and IT Operations. CIO News,
April 20, 2006.
