Intel IT, Intel`s internal IT department, is on track to reduce its operating costs, while keeping up with an increasing demand for IT services.
Peter Plunkett, regional director of Intel Information Services and Technology Group for the Greater Europe region, spoke to ITWeb during a recent visit.
He points out that in recent years, demand for Intel`s services and products has surged by between 100% and 500%, necessitating a strong focus on customer satisfaction and the ability to keep costs flat.
In short, he says, Intel IT continues to invest in IT innovations that add to Intel`s bottom line, but is striving to achieve this without increasing Intel IT`s costs.
Intel IT manages the computing infrastructure across Intel, servicing 16 000 users in 25 Greater European countries. Worldwide, Intel IT supports nearly 90 000 Intel employees.
One of the key pillars of Intel IT`s strategy is the standardisation of infrastructure across Intel`s global operations, which also includes consolidation of call centres and data centres, enabling easier management of services and infrastructure.
Plunkett notes that one of the more innovative steps taken by Intel IT was a shift to using Intel`s own technology to design new Intel products, which cuts development costs and saves licensing expenses.
Another element of Intel IT`s cost-saving drive is the installation of wireless applications in all its buildings, which improved staff efficiency and productivity, as well as the streamlining and simplification of Intel`s e-business process, which, Plunkett says, saved more than $1 billion last year.
"The plan has been to keep our budget flat over the past few years, and we`ve set targets to reduce the unit cost of IT by 50% over a four-year period," he says, adding that this goal should be reached by the end of 2006.
Intel has operations in 124 countries, while Intel IT has offices in 75 of these. Countries with an Intel staff of less than 50, such as the sales office in SA, are remotely supported by Intel IT, says Plunkett.
However, SA, like other emerging markets such as China and Russia, are seen as potential future destinations for Intel IT offices.
"Judging by the trend in SA, with the rapid expansion of the Intel office, I expect that we could have a permanent presence here within two to three years," he states.
Intel IT is also looking at establishing centres of excellence in several countries, allowing the group to set up capabilities matched to the availability of local expertise.
Plunkett visited SA to conduct "professional dialogue" with some of the country`s big corporates to share information on Intel`s own internal IT best practices, as well as identify and evaluate new technology.
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