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VimpelCom charges Ericsson with $1 billion IT transformation project

VimpelCom has signed up Ericsson to upgrade its IT architecture in a $1 billion deal.

The “complete overhaul” of the operator’s operations covers 11 countries, which Ericsson claimed was “the largest and most ambitious” in the industry's history.

A new “Digital Stack” sees the vendor’s software and cloud technologies replace VimpelCom’s existing Business Support Systems (BSS) infrastructure.

The two companies cited reduced operating costs, accelerated product and service development times, greater personalisation through “near real-time” analytics and an improved customer experience as key drivers of the deal.

Jean-Yves Charlier, Chief Executive Officer of VimpelCom, said: "This marks a fundamental milestone in our transformation as we move ahead with our strategy to turn VimpelCom into a true digital pioneer.

“The new Digital Stack will help us better respond to our customers while also centralising and simplifying our business, creating lean and agile operations that will result in a more efficient cost structure across our global footprint."

VimpelCom lost 1.2 million customers in the 12 months to March, which it put down to increased competition across its markets.

It is attempting to move on from a corruption scandal that saw it pay authorities in the US and the Netherlands fines of $795 million in February.

VimpelCom CTO Yogesh Malik said: "The future is about being real-time, customising our offerings, and making them relevant and engaging for our customers as they navigate the digital world.

“This technology shift is a huge leap forward for VimpelCom and forms part of our strategy to transform into an agile business that understands our customers and answers their digital needs.”

The deal is a massive boost to Ericsson, which saw sales fall two percent in the first three months of the year.

The Sweden-based company shook up its organisational structure in April as CEO Hans Vestberg said he was dissatisfied with the lack of growth and profitability over the last few years.



Source: http://www.eurocomms.com/industry-news/11620-vimpelcom-charges-ericsson-with-1-billion-it-transformation-project

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