Outsourcing Tops the Ratings at TVNZ
At Television New Zealand, a full outsourcing contract with Oxygen Business Solutions has reduced annual SAP costs by 15 percent and allowed completion and implementation of a new e-procurement system, while improving overall quality and continuity of service.
“In terms of a proven track record of driving down SAP costs and improving service to users, Oxygen was the most advanced.”
“Oxygen never stops looking at ways to do more for less. We see that culture as one of the benefits of our relationship.”
Neil Andrew, TVNZ Head of Operations and Technology.
Challenge
- The company was faced with significant hardware upgrade costs as part of implementing a new e-procurement system and refreshing the hardware running its SAP systems
- TVNZ’s server leases were maturing, and a major reinvestment was looming.
Solution
- Two-year full application outsourcing contract, covering the hosting and management of TVNZ’s SAP financials, resource planning and scheduling system, as well as a new e-procurement system
- SAP resides on servers inside Oxygen headquarters, and is served up to TVNZ via a wide area network
- The complete network describes a triangle between three sites – TVNZ, the primary Oxygen site and an Oxygen disaster recovery facility. In case of disaster at Oxygen’s primary site, redundant servers at the disaster recovery facility cut in with no loss of service
- All three network sites have two carriers – Telecom and TelstraClear – running into separate sides of the building.
Return on Investment
- Savings of 15 percent per annum on SAP costs.
- Avoidance of capital costs required to refresh SAP hardware and implement a new e-procurement system
- Improvement in overall quality and continuity of service.
- Significant increase in network speed
- Number of suppliers for the SAP application reduced from five to one.
Downloads
Download the full Case Study: SAP Outsourcing at TVNZ
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Customer Profile
Television New Zealand
Television New Zealand (TVNZ) is New Zealand's biggest free-to-air broadcaster and is also the nation's television public broadcaster, operating two channels, TVONE and TV2.
Over 90% of TVNZ's revenue is gained through commercial activity such as advertising, licensing and merchandising and hiring out production resources. Appoximately 10% of revenue comes from government sources.
