BASF IT Services is number one choice in the UK

BASF and its information technology provider BASF IT Services have launched a new co-operation concept for IT needs, based on a GBP5M contract covering Cheadle, Seal Sands and Cramlington over 3 years

Cheadle-based BASF plc and its prime information technology provider BASF IT Services, have launched a new co-operation concept for IT needs.

Developed jointly by BASF plc and BASF IT Services, the concept is based on an approximately five million pound contract for the provision of the IT needs of BASF plc in Cheadle, Seal Sands, Cramlington and a number of distribution sites over a three-year period.

BASF IT Services tendered along with a number of external companies to secure the deal, which will see them continuing their long-term co-operation with BASF.

BASF IT Services run the in-house SAP system, which includes all finance and personnel data, not only for BASF plc but also for BASF throughout Europe.

With about 35,000 users in Europe, it is one of the largest of its kind.

In addition, BASF IT Services delivers a security network and develops systems to increase the efficiency of the BASF production sites.

The collaborative partnership makes it possible for BASF plc to easily revise the service delivered during the term of contract.

"It is no longer necessary for the customer to return to the negotiating table when conditions change", explained David Wilson, Director Sales, responsible for BASF IT Services in northern and southern Europe.

The customer can remain flexible about his IT costs, ie should the number of users decrease in comparison to those calculated in the contact, the lowering of costs can still be taken into consideration.

A further aspect of this co-operation concept enables the customer and service provider to share not only the possible risks but also the profits of mutual projects.

This is where the relationship is different to that of a conventional customer-service provider relationship.

Instead of just a business contract, partnership starts to develop.

Increased professionalism in business relationships "This year has seen substantial development of the win-win model, which has been jointly developed between BASF plc and BASF IT Services," said Viv Ash, BASF plc Information Manager.

"This has introduced new levels of commercial professionalism and significant improvements in areas such as service delivery, project management and cost control".

"Many of the achievements are firsts within BASF and prove the success of the partnership approach".

As a result, BASF plc expects to achieve a higher level of efficiency and still lower costs by almost one million pounds (approx 1.5 million euros), by working with BASF IT Services.

An example has been the re-negotiation of the BASF contract for mobile telephones in the UK, which succeeded in lowering costs by some 40 per cent.

In addition, both parties have searched their business processes for possible synergies and simplification.

David Wilson believes that other customers could also profit from the successful business model being deployed within BASF plc.

"We are offering a high level of IT service combined with an intelligent co-operation concept.

With this clearly focused competence, we are in a league of our own in the IT sector", he says.

BASF IT Services, is among the leading IT service providers for the process industry in Europe.

It has more than 2,300 employees and recorded an annual turnover of Euro442 million in 2003.

The company key strengths are the provision of successful IT solutions for the process industry, managed infrastructure services and business process outsourcing.

This expertise is based on years of experience in providing solutions to the world's leading chemical company, BASF.

Today, BASF IT Services operates one of the world's largest networks and around 1,000 servers for some 50,000 users in more than 250 locations in Europe.

The company is committed to standardising and developing customer-orientated, tailor-made solutions.

BASF IT Services is certified under the international quality management standard ISO 9001:2000.

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