A special contract was signed today at DSB which, at the same time, marks an important milestone for the two companies involved, DSB and NNIT. The contract is worth around 600 million DKK over the next five years. DSB is transferring its IT services, which has been operated and managed by approximately 100 employees. It is the first time that DSB has outsourced its IT services, which NNIT will take over along with approximately 50 employees. For NNIT, the size of the contract with DSB is a historic milestone since DSB will now be the company’s second largest customer, just after its parent company, Novo Nordisk.
"It is a forward-looking, transparent and promising agreement which we have signed with NNIT following a tendering process lasting about a year. It is an agreement that will make DSB more cost efficient and, at the same time, boost the quality of our IT services considerably whilst we will benefit from the advantages and experience NNIT has with outsourcing,” says DSB ad interim CEO, Jacob Kjær.
A valuable boost to the entire IT infrastructure in DSB With this agreement, NNIT will take care of DSB's entire IT infrastructure for the next five years – with the option of a two year extension – in collaboration with their subcontractor Atea, who will operate all local IT equipment on DSB premises. And DSB’s Director of HR and Organisation, Lone Lindsby, stresses that the agreement will not have any negative impact whatsoever for DSB’s customers:
”The outsourcing of DSB’s IT services will not have any negative impact on the operation of our trains. Outsourcing will actually contribute significantly to and underpin DSB's ongoing efforts to balance the financials and strengthen our key competencies in the business. Throughout the transition period during which the IT services are being transferred, NNIT will follow the prudence principle, whereby the safety of DSB's business – the train operations – will be given the highest priority,” says Lone Lindsby.
At NNIT, CEO Per Kogut is delighted with the agreement with DSB:
”We are extremely proud that DSB has entrusted NNIT with its IT services, not least because this is the first time that DSB is outsourcing. We are going into this huge task with humbleness but also with the conviction that we can deliver the value DSB expects through high quality, security and stability in its IT services. And, it goes without saying that we are looking forward to inheriting more than 50 talented employees from DSB,” says CEO Per Kogut, NNIT.
DSB’s IT Director, René Munk-Nissen, is also looking forward to the close collaboration with NNIT:
”Now, together with NNIT, DSB will get a transparent and valuable boost to its entire IT infrastructure and thereby we will have a better platform to improve the quality of DSB's IT environment and provide the necessary support to DSB's core business and the challenges DSB is facing,” he says.
”DSB will now be serviced by an IT operation with a higher quality in terms of guaranteed operational stability, greater security of supply and increased IT security. The agreement includes a number of necessary improvements in quality that would have required considerable investment on the part of DSB. We will now achieve this quality enhancement through, NNIT's extensive expertise, their advantages of economy of scale and their standardised and mature processes," explains René Munk-Nissen, also pointing out that “DSB, through this agreement, will get a scalable and flexible solution with the option of utilising capacity more efficiently and with more flexibility than with our in-house IT organisation. For example, in addition to the basic services, DSB will in the future only pay for the services it actually utilises”
At the same time, DSB’s Director of HR and Organisation, Lone Lindsby, is delighted that it is NNIT that DSB is handing over more than 50 employees to:
“NNIT has extensive experience in receiving new employees and is quick to integrate them into the company, and this agreement also guarantees that our talented employees will be transferred to NNIT in a socially responsible and respectable manner,” she says.
With the signing of this contract, the end-users of the agreement, i.e. DSB’s employees, will in future be served by NNIT’s sub-contractor Atea, who will service and operate all local IT equipment at DSB.
”Currently, Atea operates around a half million PCs for our customers and with this experience DSB will both be more cost efficient and be able to provide a better service by virtue of this agreement. At the same time, the agreement also involves an increased level of self-service which, among other things, will make it easier for DSB's employees to order IT equipment and programs," explains Atea's Sales Director Carsten Ritzau.
Facts about the agreement between DSB and NNIT
NNIT will operate DSB’s entire IT infrastructure including IT services such as network, telecommunications, service desk, data centre (operation of servers and applications) and end-user services. On top of this there will be a number of cross-tower services, for instance, capacity management, information security, documentation as well the option of buying services in support of projects and various consultancy services within these areas.
Through the outsourcing project, DSB has carried out a comprehensive documentation of the company’s IT infrastructure and held an EU tender. In the prequalification process six vendors were qualified to submit a tender for the outsourcing of DSB’s IT Infrastructure. Three of the prequalified vendors chose to submit a tender and among them two vendors were selected to submit a final bid.
Facts about NNIT – DSB’s new provider of IT operations
NNIT is owned by the Novo Nordisk Group and is a major Danish full-line supplier of IT services. In 2010, NNIT had a turnover of DKK 1.7 billion and a profit of DKK 204 million. Today, NNIT has more than 1,700 employees.
Over the last five years, NNIT has shown a steady growth in turnover and from 2012, its turnover is expected to be over 1.9 billion DKK a year. Thus, the agreement with DSB will represent around five percent of NNIT’s annual turnover. The company has several customers within the public and private sectors in the field of IT services, these customers include the Copenhagen Metropolitan Region – HK, and Saxo Bank. DSB will become NNIT’s second largest customer (after Novo Nordisk).
NNIT’s subcontractor Atea’s reached a turnover of 5.5 billion DKK in 2011 and a profit of 272 million DKK. Atea has 1,400 employees in Denmark and have offices in all Nordic and Baltic countries.
For further information please contact:
CEO Per Kogut, NNIT
Telephone: (+45) 30 75 35 00
Telephone: (+45) 24 68 00 00
NNIT is an international IT service provider offering IT consulting and the development, implementation and operation of IT solutions. We create value for our private and public sector customers by treating their IT as if it were our own. We use IT to support our customers’ daily operations and help them to achieve their business goals. Owned by Novo Nordisk, NNIT employs more than 2,200 people. In 2013, our turnover was DKK 2.2 billion.