DuluxGroup CIO Jonathan Treloar has done what is probably the opposite of conventional belief. In the pandemic impacted the world as enterprises are exploring cost-saving methods, Mr Treloar has taken the insourcing plunge.
Mr Treloar said on the website: “A review of our operations led us to decide to move away from the model of single-sourced offshoring for most IT services, replaced by a more dynamic blend of internal teams and smaller niche providers”.
When DuluxGroup was publicly listed after demerging from parent company Orica, the newborn IT function had core application support inhouse, supported by some boutique service providers.
The datacentres, infrastructure and service desk were all outsourced, said Mr Jonathan.
“Fast forward to 2019, we were acquired by Nippon Paints which has given us a great opportunity to explore new markets, share knowledge and start to think about how we contribute to the larger group”.
A review of our operations led us to move away from the model of single-sourced offshoring for most IT services, replaced by a more dynamic blend of internal teams and smaller niche providers
Duluxgroup Head of Information Technology, Mr Jonathan Treloar
Mr Treloar claimed “the decision will see the creation of up to 40 new jobs within the DGTech team across a broad range of capabilities. Calling this a bold move during a pandemic, Jonathan said this is critical to DuluxGroup realising its ambitions.
It remains to be seen if the insourcing model is sustainable. No wonder Mr Treloar called it ‘a bold step’.
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The insourcing plunge
ITVibes spoke to industry observers who opined this could be a de-risking strategy removing the dependency on one vendor while keeping the doors open for select and niche providers.
Dulux is one among the many enterprises insourcing.
Melbourne-based National Australia Bank has been on an insourcing trajectory for the last couple of years. The latest financial results reveal the insourcing push at NAB.
- Strategic investment in insourcing technical expertise
- 42% reduction in key vendor infrastructure run costs since FY16
- Strategically insourced capabilities include networks services and workplace technology
- Sourcing of Technical FTE: Insourcing at 51%, Outsourcing 49%
For more details of NAB’s digital strategy, transformation check here
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