Belgian brewer InBev has agreed an IT outsourcing contract with LogicaCMG for the management of its Western European and global headquarters’ business systems and application services. The transition will begin July 1, 2006.
The transfer to LogicaCMG will involve the transfer of about 70 Inbev employees, and covers the following countries: Belgium, the Netherlands, Luxembourg, the UK & Ireland, Germany, Italy and France.
Under the five year deal, which is worth E70 million, the brewing giant is expecting an average annual EBITDA improvement of E6 million for the duration of the contract. Total one-off costs relating to this outsourcing decision will be approximately E6 million.
Through this contract with LogicaCMG, InBev will be able to achieve a more consistent approach to its information services across a number of European countries. It will allow InBev to manage its global headquarters’ and Western European business systems and applications services at an optimal cost while maintaining strong service levels, commented Claudio Garcia, InBev’s chief information and services officer.
Furthermore, ensuring appropriate arrangements for people who are transferring to LogicaCMG has been an important element of the agreement.
The decision is a follow-up of InBev’s intention announcement from February 24th, 2006 to rationalize its information services.