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"Being CIO here, I'm constantly looking at what I would term technical obsolescence, or what is fading out, and what I need to do to keep the lights on. I found that Accenture has been very good in helping me to manage that. They haven't sat back on their laurels. They have helped me identify various areas and also have given me options on what I should do. Accenture did some due diligence and guaranteed that they would save us 5 million pounds ($8 million) a year. I have to say Accenture made a compelling offer to us."

- Lewis Doyle, CIO and Group Purchasing Director, QinetiQ.

L to R: Lewis Doyle, CIO and Group Purchasing Director QinetiQ Frank O'Dea, Managing Partner EHT Europe, Accenture

QinetiQ is a scientific research organization employing 10,000 people. Of that, 7000 are scientists or engineers, and of that 7000, approximately 1500 are PhDs. QinetiQ was reaching the end of an existing outsourcing contract and identified the need for a single source solution to manage complexity, add innovative thinking, substantially reduce the total cost for IT services and improve current service levels and customer service. QinetiQ also defined the requirement for a range of new service platforms and IT technologies, making strategic input and proven transformation delivery capabilities from an outsourcing provider mandatory. Accenture stepped up and assisted in presenting the service solution to all levels in QinetiQ and convinced senior managers and executives it could deliver QinetiQ's requirements.

In 2003, QinetiQ signed a 7 year, $30 - $50 Million contract with Accenture to provide a broad range of applications, hardware and data center services, as well as purchasing and program management. It supports 10,000 users with all services provided throughout the United Kingdom and the USA, with over 60 sites and approximately 200 staff.

Partners Exceed Savings Targets In Year One

Both QinetiQ and Accenture recognized the value of creating a win-win culture if their seven-year relationship was to produce true business benefits to QinetiQ. "Over the first year of the contract, we managed to reduce the cost significantly, and at the same time improve service--and we have maintained the cost reductions well into year two," states Doyle. Accenture transformed the IT service provision to a fixed-based and high availability service level framework rather than one merely based on response times.

To achieve the early savings, QinetiQ and Accenture bought into a structured and effective governance and escalation framework, while establishing excellent working relationships at all levels of both organizations. The governance forums have resolved all major challenges in the contract by regular dialogue and achieving principals-based solutions to all issues. The particularly strong relationship between QinetiQ's CIO and Accenture's Managing Partner is instrumental in resolving any major issues and challenges.

Beyond the first year achievements, Accenture continues to consistently deliver to service levels; it delivered a major service transition and transformation program; and QinetiQ and Accenture have designed and begun to deliver a second major transformation program to transform QinetiQ's network and desktop infrastructure using leading edge, secure networking technology.

Characteristics of the Partnership

QinetiQ attributes the strength and success of the partnership to:

• open and candid dialogue between both parties
• win-win based solutions for mutual benefit
• a desire on the part of both organizations to want the other to succeed
• transparent pricing and operating models, which allow QinetiQ to understand how Accenture operates
• innovation and better, cheaper ways of doing things that are instigated and discussed by both partners

"We've operated on both sides to respect the spirit of the contract," said Doyle. "It's a risk and reward contract. There's gain share in it for investment for Accenture, and also there's reinvestment of money that we save, which benefits both parties."

Publish Date: June 2005

Copyright © 2005 - Everest Partners, L.P.

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