AstraZeneca sets up global tech centre in Chennai to cut IT cost

As part of its strategy to cut down the IT budget and improve operational efficiency and data safety, the UK-based pharma giant AstraZeneca has launched its first Global Technology Centre (GTC) to develop its world-class IT capacity in Chennai. With this the company would reduce the outsourcing currently handled by eight vendors, increasing the in-house IT capability in near future.
 
While the new facility is set up with an investment of around $9 million for the physical infrastructure, the second GTC would be set up in San Francisco in 2015 and the third probably in Eastern Europe in a couple of years, said David Smoley, Chief Information Officer, Astra Zeneca.
 
The company is looking at reversing its IT outsourcing operations to in-house, considering it would be more cost efficient, and would give operational and technology leadership, the control of the main IT operations. According to earlier reports, the vendors the company has been engaged with include HCL Technologies, Cognizant, Infosys and Accenture.
 
"There is a shift in the strategy with most of the outsourcing works will become in-house operations. At present, 70 per cent of the IT spend is with third parties and this would become 30 per cent in next three years," said Smoley, adding that the facility will start with SAP and middleware integration.