picture of birds eye peas
The frozen food firm could no longer rely on it's parent's infrastructure

IT frozen out in Birds Eye deal

Food manufacturer was left with “effectively no IT” after acquisition

Written by Angelica Mari

Birds Eye Iglo Group (BEIG) has been forced to build a new IT infrastructure after a private equity buyout from consumer goods giant Unilever left the firm with “effectively no IT systems”.

The group still has “a couple of months to go” until its main project, a Europe-wide SAP installation, is complete. Project teams are under “absolutely huge time constraints”, said a source close to the project.

BEIG had historically depended on its former parent’s infrastructure. But after the acquisition by Permira 18 months ago, it was given a deadline to put its own systems in place, say insiders.

The food company hired chief information officer Tania Howarth to manage the process last April, with the rollout of an SAP system across its entire European operation as the key objective.

The initial action plan for IT involved outsourcing the group’s software support function to Fujitsu “under very demanding time limitations”, said another source.

Consultancy Capgemini was also awarded a contract last year to manage the company’s telephony and hardware infrastructure, but the agreement only lasted for a month before “project issues” arose, prompting BEIG to switch to Indian supplier Satyam partway through the main systems integration project.

The changeover is understood to have caused more challenges, as negotiations had to be completed under an even tighter deadline so Satyam could begin work.

Despite the pressure, Birds Eye “can deliver a lot quicker” since the acquisition, as the group no longer needs to report to its former parent, according to insiders.

BEIG recently hired 12 staff to boost its IT team, including applications and infrastructure directors, as well as other senior positions managing different aspects of the new technology.

Private equity buyouts present major challenges for IT, said Mark Raskino, research vice president for emerging trends at analyst Gartner.

“These firms may not have the opportunity to improve their underlying functionality because they keep having to freeze systems to move them to the next owner,” he said.

BEIG declined to comment.

Tags:

Further reading

Thomson merger saves £150m

Streamlining IT prompts big savings as holiday firms unite   More...

Related articles

Do you agree?

Advertisement

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Watch

25 Jul 2008

7.85 MBPodcast Special: Views from the Valley More...

24 Jul 2008

3.68 MBSpammer jailed, Esquire e-cover, and network passwords More...

23 Jul 2008

2.99 MBSmall time security, official 'spying' requests and a spammer jail break More...

Poll

EUROPEAN E-COMMERCE

EUROPEAN E-COMMERCE

Are you happy making an online purchase from another European country?

Previous poll results

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Spotlight

Credit card transaction

Credit card fraud rampant in the UK

Attempted frauds go unreported and ignored, analysts claim   More...

Intel

Intel rolls out new embedded line-up

System-on-a-chip offerings promise footprint and power saving   More...

Advertisement

Network cables

Tech giants collaborate on wireless HD

Another attempt at cable-free transmission in the home   More...

iPhone fever fills AT&T coffers

US provider cashes in on Apple smartphone   More...

Advertisement