Jet Infosystems extends outsourcing contract with M.Video for three more years

09/07/2011

Moscow. Jet Infosystems and M.Video have extended the scope and duration of their outsourcing contract. The integrator’s responsibility covers not only the IT infrastructure but also the SAP ERP and Oracle Siebel CRM, including system setup, monitoring, administration and technical support. Now, Jet Infosystems will also provide maintenance for the Oracle Data Integration bus (ODI). Jet’s Service Center processes about 800 maintenance requests a month from M.Video’s IT department.

SAP ERP, Oracle Siebel CRM and ODI need routine systems administration, including adding and modifying clients, scheduled maintenance and other standard operations. Technical support provided to Oracle Siebel makes it possible to quickly restore the system and its modules to ensure M.Video’s core business continuity.

The service level agreement (SLA) transparently specifies all the terms and conditions of the contract. The smooth process of monitoring and control makes it possible to generate system status reports without any delays. Since the IT infrastructure is continuously expanded and updated, maintenance requirements also evolve. Jet Infosystems engineers deal with about a hundred such changes a month; once a year, on average, the SLA is amended accordingly.

Since many M.Video departments (e.g. shipping) operate around the clock, outsourced IT services are provided on a 24/7 basis. If a system is changed at night, or a one-time major change is introduced, Jet Info summons appropriate personnel as needed. For example, to meet a request for the expansion of disk storage space Jet Infosystems provided its own bench equipment. A ten-person team was asked to deal with its delivery and setup on weekend nights.

"We have always believed that non-core tasks should be outsourced. Until recently we have been outsourcing mostly routine technological operations that we simply had no time or resources to handle," comments Igor Veselov, IT operations director at M.Video. "At a certain point we realized that it was high time to outsource our IT administration and maintenance as well. Since Jet Infosystems had been our dependable partner in all kinds of situations, we asked it to take care of certain business processes. This new level of confidence could be reached only between mature and responsible parties.”

"Such projects are based on complete confidence and a spirit of true partnership that are not easy to foster and maintain," comments Andrei Geshel, director of the Jet Infosystems Service Center. "Our cooperation with M.Video’s IT team has been a genuine success story. Due to our coordinated efforts and the fact that we are, as they say, on the same wavelength, and also because of the high professionalism of our colleagues and the keen interest of the IT management, all the problems are solved quickly and with a high level of expertise”.

Thanks to outsourcing, M.Video now has one single entity responsible for the operations of its IT infrastructure. On the one hand, Jet Infosystems conducts monitoring and performs systems administration. On the other hand, it supervises all changes made to software and hardware by third-party contractors. Infrastructure and software maintenance used to require up to 80% of M.Video’s own IT department personnel. Outsourcing means that only one expert from the company is now needed to deal with these tasks.


Background

M.Video and Jet Infosystems started cooperating as early as 2005 by signing an IT support contract. In 2006 M.Video outsourced the administration of software and the SAP ERP server complex located in its Moscow office to Jet Infosystems for 5 years. In 2008 the contract was supplemented with technical support and monitoring tasks and a three-year agreement was signed. At the same time another three-year contract was agreed upon for the administration, support and monitoring of the Siebel CRM information system.

About M.Video

M.Video is a leading Russian retailer of electronics and home appliances, founded in 1993. In 2007 M.Video became the first Russian electronics retailer in the country whose shares were traded in the securities market. It is currently listed on two major Russian exchanges - RTS and MMVB (ticker: MVID).

By mid-2011 M.Video had 240 large stores in 105 Russian cities.