Tenneco Gains Flexibility and Consistency with Capgemini Outsourcing

| Succesverhaal

Capgemini helps automotive supplier, Tenneco, create a business-driven IT transformation roadmap, and provides significant cost reduction while future-proofing global IT investment

“ We were searching for a solution to reduce our costs while maintaining consistent service levels, improving staffing flexibility, and providing access to leading IT practices...The Rightshore® model allows us to always have the best skilled employees at the right time and place and at the right cost. In addition Capgemini work with us to blend Tenneco and Capgemini best practices to create an efficient delivery model. ”Bill Haser, CIO, Tenneco

The Situation

Tenneco is a US$4.6 billion global manufacturing company based in Lake Forest, Illinois, US, with 21,000 employees worldwide. The company is one of the world’s largest designers, manufacturers and distributors of automotive ride control and emission control products and systems for the automotive original equipment market, and the repair and replacement market or aftermarket.

In 2002, in an effort to reduce global IT costs, Tenneco’s IT function moved from a regionally-managed model to a global model. At that time Tenneco began the process of standardizing IT processes globally, and leveraging its global scale. In 2008 Tenneco IT decided to look into outsourcing: Tenneco was looking for an outsourcing service provider to not only further reduce costs, but also to provide the flexibility to scale up or down as business requirements and budget demanded, while providing the standardization necessary to support global operations today and in the future. Tenneco chose Capgemini to provide Application Development and Maintenance (ADM).

The Solution

The base ADM services are provided for a fixed price that includes a pool of hours for maintenance, service requests and project work. In addition, Capgemini provides staffing and support for global projects as requested by Tenneco. These supplemental services are delivered either as time and materials against an established global rate card, or fixed priced depending on the service.

Through its global delivery model called Rightshore®, Capgemini supports around 90 applications including several elements of SAP, EDI, and Oracle forms, Web services, and one thousand Lotus Notes databases.

The Result

The outsourcing arrangement has enabled Tenneco to achieve an overall IT cost reduction of 27%. The flexibility of Rightshore® means services are not delivered from a front office/back office model of outsourcing. Instead, they are delivered from one team working jointly across the globe from the Tenneco headquarters in Lake Forest, Illinois, and its European HQ in Brussels, Belgium, to Capgemini’s delivery centers in Chicago, Europe (UK, Poland, Belgium, and Portugal) and Mumbai in India. This provides Tenneco with a cost-effective solution as well as the scalability to adjust to business needs through a flexible pricing model that can ramp up and down as required. Because it is one global team, Capgemini can easily implement new standards and best practices across the whole organization, allowing consistent delivery to the client.

In addition, Capgemini sets high performance targets that have produced year-on-year improvements in efficiency, productivity and service quality that supports future application development.