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BT takes over Capgemini's network ops

Outsourcer gets out of that kind of plumbing

Tags: bt, capgemini

By Jo Best

Published: 25 October 2006 18:00 GMT

Outsourcer Capgemini has signed a deal with BT that will see the telco take over the running of Capgemini's networks.

Under the multi-million pound deal, BT will take over a "substantial part" of Capgemini's European networking infrastructure services and supply them to the consultant's customers.

Some 250 of Capgemini's staff will transfer to BT as part of the agreement and some of the telco's workers will transfer to work with them.

According to Capgemini's CEO of global outsourcing services, Paul Spence, using BT will be cheaper for its customers and allow the outsourcer to focus its efforts on providing more "high-value, strategic and innovative work", he said in a statement.

Ovum analyst Phil Codling said the choice to outsource its network to BT is not a surprising one.

He said in a research note: "[Capgemini] has increasingly positioned itself towards the consulting-led, business-centric end of the IT services market. The network is often an enabling factor in delivering such services but it's less of a priority than, say, business process expertise or enterprise applications skills.

"The choice of BT as partner and recipient of the assets and people is also not a huge surprise. Capgemini has a long record of using BT as a network provider, even if it hasn't been given the official 'strategic partner' status that BT bestows on HP, Accenture and CSC."

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