Vodafone has said a system standardisation programme will play a key role in delivering it with £2 billion worth of savings by 2012.
The telecoms firm yesterday announced it had delivered £1 billion worth of savings under an efficiency programme so far, and doubled the target. The savings up to now come principally from job losses, in which 2,300 employees have left the company in Europe alone, as well as from the company improving the efficiency of its data networks and supply chains.
As Vodafone reported it had more than doubled annual profits, before tax, to £8.7 billion, it shifted the emphasis for the cost cutting.
Vodafone said there would now be a focus on the “centralisation” of its IT infrastructure, with further integration of its European network. It is also aiming to rationalise its product portfolio, and simplify and standardise processes.
The company revealed it is additionally planning to improve its data warehousing as part of the efficiency improvements.
But job cuts will continue to play a part in the savings – Vodafone plans to cut support staff, introducing more self-service functions for customers. It also plans to offshore some “field operations” to “low cost countries”.
Vittorio Colao, chief executive, said the cost cuts enabled Vodafone to reinvest the money in offsetting inflation, as well as enabling growth. They meant that the company could make “commercial reinvestment to improve market share and further strengthen our technology platforms”.