Foster's IT revamp saves $21m

Foster's IT revamp saves $21m

Summary: Foster's Group has seen $21 million in benefits this year from an extensive IT transformation to simplify its disparate systems.

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TOPICS: CXO, Outsourcing
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Foster's Group has seen $21 million dollars in benefits this year from an extensive IT transformation to simplify its disparate systems.

The global information technology project is a set of initiatives, including the development of a common business platform, which are expected to be mainly completed by 2011.

"We are developing common, integrated information technology systems as a major enabler for greater efficiency, better performance monitoring, accountability and transparency," said the brewer's annual report, released this week.

Foster's CIO Andrew Leyden was not available for comment on the project. According to the Australian IT, in addition to tinkering with its core systems, the company is also moving globally to a common Oracle ERP system and has cut down the number of vendors it deals with from 100 to 12.

The company's report said that Foster's was on target to deliver savings of $100 million in annual cost savings by 2011. This comes at a price. IT development costs, including purchased software and labour to develop software, were $25.8 million this year compared to $2.1 million last year, while capital expenditure, which also included costs from the IT project, has also been higher than the previous year.

The company recently signed a global deal with Indian outsourcer Wipro which will see most of its internal IT function being moved over to the outsourcer. Foster's has said there will be job losses due to the move, but has yet been unable to name a figure.

Topics: CXO, Outsourcing

Suzanne Tindal

About Suzanne Tindal

Suzanne Tindal cut her teeth at ZDNet.com.au as the site's telecommunications reporter, a role that saw her break some of the biggest stories associated with the National Broadband Network process. She then turned her attention to all matters in government and corporate ICT circles. Now she's taking on the whole gamut as news editor for the site.

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3 comments
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  • Online "journalism"

    Ms Tindal you should be ashamed to have typed the words "Foster's CIO Andrew Leyden was not available for comment on the project. According to the Australian IT."

    Not only are you revealing to the world that all you are doing is ripping off a story from a rival website, but you are showing that you are so lazy that you can't even be bothered to try and get any additional comment yourself.

    Embarrassing!
    anonymous
  • Response

    hi Stu,

    actually we did try and contact Andrew Leyden directly that day. We phoned Fosters and asked for comment.

    The reference to the AustralianIT is referring to an article they published earlier in the year, it does not refer to seeking comment from Andrew Leyden. I think you may have missed a full stop in between those two sentences.

    Also, I feel obliged to point out we did not rip this story off from anyone, in fact we were the only IT outlet to cover this story last week, and we led the coverage on the recent Foster's Wipro IT outsourcing.

    Kind regards,

    Renai LeMay
    News Editor
    ZDNet.com.au
    renai.lemay@zdnet.com.au
    anonymous
  • Ha, though I know this story is old, I just cannot help posting. Fosters has repeated had problems with the IT including down time for their web servers, email servers and entire network since this "transformation" which essentially meant outsourcing everyting to India.

    How much $ do you lose when your network is down and your business cannot funcction.

    Another million in the pocket of the CIO as the board think its great stuff. Tossers.
    brewerjohn