Q&A – Virgin Trains
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For Virgin Trains, a single supplier strategy eases the management burden
What did that IT transformation entail?
Previously we had a number of servers based at stations, and some of these were in rather vulnerable locations. We took the decision to centralise all the servers in a Capgemini data centre where they could be safer, more secure and managed better on a 24/7 basis.
We also implemented a standardisation programme to make sure that the service could be delivered remotely to an acceptable standard. And we went from a team of about 28 people supporting the infrastructure at Capgemini down to around five people now. We just finished this transformation about a year ago.
You recently renewed your contract with Capgemini. What persuaded you to do that?
We are generally satisfied with the engagement, and the success we had with the IT transformation was another reason that we thought, ‘why change?’
You renewed the contract for three years. Why not longer?
Personally, I don’t believe in signing ten-year outsourcing contracts. There is an argument that when you have a strategic alliance, you sign a long-term deal to get a better price. But we prefer to pursue a three-year deal, because we can look at where we want to go, how we can improve things and how we can reduce cost [more frequently].
What changes were made when you renewed the contract?
The major change was around the service level agreement relating to BlackBerrys. Believe it or not, we did not previously consider this to be a critical service; we always thought people would be able to wait until they could come into the office to get their emails if BlackBerry service went down.
But apparently, people can’t bear to be without their BlackBerry for ten minutes of the day. So we’ve renegotiated our agreement to a higher service level.
Have you been able to negotiate down the cost?
We did renegotiate a cost reduction for the contract. We’ve made a few changes so cut some cost, plus I suppose Capgemini could see more clearly what they needed to support the infrastructure [and therefore cut the price].
By having a single IT infrastructure supplier, are you not missing out on the chance to negotiate cheaper contracts?
I’ve previously worked under the model where you have multiple suppliers – maybe help desk from one supplier, server support from another and desktop services from a third supplier. But I found that if you are not careful, gaps can appear in the delivery model and you get a culture of blame [between suppliers].
Plus it makes it easier for my supplier relationship manager to manage the contract suppliers, because he doesn’t have to go back and forth between different companies.
Has Capgemini ever exploited its status as a strategic supplier to grow sales?
Before I worked with them, I thought by the nature of the company that they might be difficult to manage; I imagined that you cough and you have to pay for it.
And although, like everybody else, they are in the business to make money, this is not the case – we work together.





