Travelodge Outsources To Cut Costs

Budget Hotel Chain's Managed Services Deal With Hibernia Evros To Cut IT Costs By a Fifth

Irish-owned budget hotel chain Travelodge has outsourced  all of its IT needs  by signing a managed services agreement with Hibernia Evros Technology Group. The deal is expected to cut IT costs by a fifth.

“We operate a low cost business model in a highly competitive, price sensitive market,  so we need to minimise all costs,” commented Travelodge's Richard O’Sullivan.

“Apart from the undoubted cost benefits, outsourcing our IT allows us to concentrate and focus on our core business.”

The Irish segment  of the Travelodge hotel and restaurant chain was acquired by former Jurys Doyle executives Seamus McGowan and Richard O’Sullivan  in 2004 in a deal worth €22.5 million. 

The group includes 11 hotels located throughout the island. The company’s newest hotel opened in Castletroy, Limerick earlier this year.

Under the agreement, which  covers 55 users,Travelodge staff will have direct access to a HiberniaEvros service desk, and  HiberniaEvros will provide 24x7 support for Travelodge servers, network, backups and security.

“We have hotels throughout Ireland so HiberniaEvros’ broad national presence was an important factor in signing this agreement,” O’Sullivan said.

Travelodge and HiberniaEvros estimate that they can cut IT costs by at least 20% through the managed services deal.

“Travelodge is one of many companies which are beginning to realise the major advantages of outsourcing IT,” added , Hibernia Evros Technology Group joint managing director Caroline Godsil.

HiberniaEvros has offices in Dublin, Cork, Waterford and Kildare. In addition the company has engineers based in Belfast, Galway, Clare and Kerry. Travelodge, which employs approximately 135 people, operates HP servers in a Microsoft environment.

In a recent survey HiberniaEvros found that 63% of Irish firms listed ‘focus on core business’ in the top two reasons for outsourcing. Cost saving was the second most popular reason, mentioned in their top two choices by 51%.

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