Argos Realizes Multi-Million Savings

2 mins read

Switching to Origina nets tens of millions in savings for Argos.

CUSTOMER PROFILE

One of the largest supermarket and retail groups in the UK with annual sales reaching £26 billion, Argos has over 1,000 physical locations and 60,000 omnichannel products. It also represents one of the largest IBM software estates in the UK, with 40,000 user devices, an array of servers and millions of endpoints.

THE PROBLEM

Facing a three-year contract renewal, Argos found itself at a crossroads. It wanted to maintain its stable, albeit aging, IBM estate but it was dissatisfied with the level of support its staff received from IBM because it wasn’t as responsive as the company’s team required.

At the same time, internal pressure to cut costs spurred the Software Asset Management (SAM) team to consider whether OEM-provided third-party software support was the best option.

“Some of the software we’re using is 20 years old. We don’t want to upgrade it – we want to continue using it in the same fashion that we are now.”

If the retail group didn’t want to upgrade, there was little keeping itself tied to an expensive provider that didn’t meet its high standards for software support. The team set out to see if it could find more affordable and higher quality service.

THE SOLUTION

After a lengthy search process, Argos eventually switched to Origina ahead of its renewal date. The difference in the quality of software support was visible immediately.

On average, the tickets the group lodged with IBM took 12 hours – and at times several days – to resolve. The team often dealt with a variety of IBM specialists in order to find the issue and apply a solution, rather than being able to work with one assigned technical engineer.

With Origina’s dedicated independent Global IBM® Experts, Argos saw its ticket resolution time drop to under one hour.

The improved level of service didn’t come with a higher price tag either. The retailer was able to cut the amount it spends on software support considerably, saving itself tens of millions when compared to what it would’ve spent renewing with IBM.

“We’ve really found massive savings in moving to Origina. We feel like we’ve found real value and we’ve also gained a much better service.”

THE RESULT

Argos was able to enjoy:

  • Significant cost savings.
  • Improved software support service.
  • Reliable response and resolution times tied to a Service Level Agreement.
  •  Stable runtime from its legacy software without needing to upgrade.