by Julian Goldsmith

Philips signs Cognizant for IT transformation project

News
Jul 24, 20122 mins
IT StrategyManufacturing Industry

Healthcare to consumer goods manufacturer Royal Philips Electronics has struck a deal with Cognizant as a strategic partner to help it rationalise its IT infrastructure.

Cognizant will supply the manufacturing giant with a range of consulting and application services to consolidate systems to a managed service that supports multiple business units.

Although the details of the strategy were not explained in the announcement, the companies said the move was intended to help Philips cut IT infrastructure costs, obtain deeper visibility into its demand chain by giving a real-time insight into business performance, so that it can respond more effectively to the needs of its markets.

Last October, the company cut its IT workforce by 4,000 amid falls in profits. At the time it pledged to save £699m in part through savings in IT costs.

In a statement, Philips CIO and Executive VP Jeroen Tas said: In implementing a paradigm shift in our IT delivery model, [we] will create solutions that enable Philips to capitalize on business opportunities, and win in the marketplace. By optimising the speed, cost  and quality of our value chain, we are confident of further strengthening the trusted Philips brand globally and delivering ever greater innovation.”

Cognizant has a history of supporting global manufacturing IT projects. Last November, it won a large programming and reporting outourcing deal with pharmaceutical giant AstraZeneca.