Tuesday, July 29, 2008

Royal Mail unveils plans to spend £1.2bn on IT

With the economy in the situation that it is it may be a bit of a surprise that Royal Mail have unveiled plans that they intend to spend £1.2 billion on IT related projects in the next three to four years. The reasoning behind this is the increasing competition that it faces.

Chief information officer of the Royal Mail said that a robust IT and logistics system will allow the organisation to develop new markets. This is especially the case with Royal Mails capacity to deliver the right item to the right person.

Some of the money is being spent on new wireless terminals for delivery drivers to record customer’s confirmation of the delivery of their parcel. They are also spending money on new sorting machines which will allow for standard mail to be sorted quicker and more efficiently. In total the Royal Mail have 10 to 20 IT projects on the go.

It is refreshing to see such an investment in IT and it will important to follow the progress of Royal Mails IT investment to see if their new IT strategy is effective.

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