Tag: Royal Mail

Royal Mail strikes GBP1.5 billion computer deal

Posted by | May 6, 2003 | |

The Royal Mail today signed a GBP1.5 billion contract to outsource computer work to private companies in a move aimed at saving the postal group GBP250 million over the next 10 years. More than 1,700 Royal Mail information technology staff will transfer to Computer Sciences Corporation (CSC), BT and Xansa, which will be responsible for running data centres, desktop computers and hundreds of business application systems. Adam Crozier, Royal Mail Chief Executive, said: “This is a great deal for Royal Mail and a great deal for our people. It is a vital component in our renewal plans in terms of reducing costs and giving us the information technology services that we need to make Royal Mail a great company.”

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EU VAT plans `will add 5p to UK postage stamps'

Posted by | May 6, 2003 | |

European plans to impose VAT on national postal services could put 5p on the price of a stamp, it was claimed today. The Government vowed to oppose the idea, as both Conservative and Labour Euro-MPs condemned it as an unnecessary new burden on consumers. But EU Tax Commissioner Frits Bolkestein insisted there would be no “significant” price rises and said he was just trying to create fair competition between traditional state postal services and private rivals.

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Royal Mail’s John Modd appointed to Spring management board

Posted by | May 6, 2003 | |

Royal Mail has announced the secondment of John Modd, previously Managing Director of its International Services business, to Spring, the joint venture cross border mailing company established by Royal Mail, TPG and Singapore Post. Mr Modd took up the role of Vice President Strategy and Business Development on May 5 2003. Based at Spring’s Headquarters in Amsterdam, John will report direct to Spring’s CEO, Theo Jongsma.

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Royal Mail to outsource GBP1.5bn IT operations

Posted by | Apr 27, 2003 | |

Royal Mail is preparing to outsource its nationwide IT operations in a deal worth up to pounds 1.5bn. The company is expected this week to sign a 10-year agreement with a consortium including CSC, the American computer services group, and BT, the telecoms giant. The deal involves the transfer of 2,000 jobs out of the Royal Mail group. The move is part of Royal Mail’s drive to focus on its core operations and to slash operating costs. The group has already outsourced building operations and maintenance as well as employee health services.

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Forgoing Monopoly

Posted by | Apr 25, 2003 | |

The first phase of deregulation intended to open up 30 per cent of Royal Mail’s letter market to competition is under way. While it is far too early to say how much impact this has had, a question that does need addressing is how direct mailers are going to respond. Will they be looking to switch to other postal carriers? Will they be able to adopt a more flexible approach to their mailing schedules? And what will be the best way to buy in this new, competitive environment? A number of mailing houses remain wary of new postal carriers entering the market, and from what they have seen so far, cannot see them persuading mailers to switch from Royal Mail.

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