success story: correos

Correos was born more than 300 years ago as the only provider of postal services in Spain and it continues to be leading operator in today’s liberalized market. Currently, the company’s strategy is focused on internationalization, sustainability and digital transformation. With more than 53,000 employees, the company provides services to citizens through an extensive network of almost 2,400 offices, distributing nearly 10 million daily shipments.

Correos Group has three subsidiaries: Correos Express, dedicated to express parcels; Nexea, specialized in multichannel solutions for mass communications of companies; and Correos Telecom, which is charge of management and marketing of telecommunication infrastructures.

NTT DATA cloud adoption journey


To cope with the structural changes affecting its traditional market, Correos has adopted a strategy based on expansion and diversification that seeks to better exploit new growth opportunities, such as the increase in parcel deliveries due to the e-commerce boom, a market where Correos is the dominant operator with 45% share. It also wants to better leverage its extensive network of post offices using new technology to improve the quality of service it offers to the public, make its services more accessible and expand the range of services offered. These new services are offered in conjunction with third-party providers, such as mobile phone operators, utility companies, train operators and the DGT, the government agency responsible for issuing driving licenses and vehicle documentation. To effectively support these new needs and to adapt more quickly to fast-changing market conditions, Correos realized that it needed to overhaul the traditional way of developing IT applications because it needed to shorten time to market.

NTT DATA cloud adoption journey


NTT DATA already had a long history of working with Correos in various areas of its technology department, and wanted to build on this successful relationship and leverage the experience and skills of NTT DATA in business transformation. Correos had a specific need to better support its fast-growing logistics business with new applications. In addition, it tasked NTT DATA to provide architecture services for its new Citizen Services Platform, which serves as the foundation for developing and delivering applications to support new services.

As well as hosting the logistics and other business application of Correos and the common technological services on a modern cloud-based infrastructure, Correos was looking for a platform with the capabilities to deliver value through continuous integration and delivery by creating a DevOps culture.

NTT DATA quickly realized that for the project to succeed in its aims, would need to overhaul the traditional ways of working in Correos, particularly the way applications were developed. Business and technology functions had traditionally a different pace and communication between them was not as fluid as it needed to be. That made it difficult to align IT with business needs and so maximize long-term value.

To address these issues, NTT DATA designed a new software development governance model, oriented around products and based on agile development rather than the traditional waterfall model. The governance model has four key characteristics:

  1. Projects are prioritized based on the value added to the company’s strategy. This prioritization is reviewed periodically, together with the assigned budget.
  2. Software development capacity is organized around stable teams that last over time. In this way, the creation of high-performance teams is promoted and the management and planning of resources is facilitated.
  3. Periodically, the prioritization and scope of the projects being executed is reviewed, which allows for rapid adaptation to possible changes, be they strategic, tactical or operational.
  4. The use of agile project management techniques together with the establishment of lean KPIs allow teams to focus on optimization and the value provided to users.

The adoption of agile methodologies represented a real “culture change” in Correos, but it was essential if it was to reduce the time required to develop applications and improve QA.

The project began at the beginning of 2019 and during its first phase focused on developing the cloud foundations and enterprise architecture components required for delivering new applications in a fast and reliable manner. For this reason, Correos chose Amazon Web Services computing, storage and infrastructure services for delivering reliable and secure applications in a fast and consistent fashion. NTT DATA enabled Correos to use native AWS services aimed to integrate as a principal part of strategy architecture solutions which permit Correos to build a wide new range of useful services to be offered to citizens in conjunction with the DGT. The advantage of making services such as vehicle documents and transfers, duplicate driving licenses, and payment of traffic fines available in any post office, is that the citizen no longer has to make a dedicated journey to a DGT office, which could be at considerable distance.

NTT DATA cloud adoption journey


The multiservice platform is now operational and as well as supporting the DGT services. All new applications for Correos’ logistics operations have been developed on the platform. Thanks to the new way of working and the new enterprise architecture, time to market has been reduced considerably, quality has improved, and the platform offers greater scalability.

In addition, Correos has achieved significant benefits in the way work is organized and performed. The different teams now have access to a hybrid skill set that understands and represents the needs, challenges and capabilities of the teams they represent. In addition, the teams train each other to complete required work through automated self-service portals, rather than manually implemented change tickets.

NTT DATA cloud adoption journey


Correos needed a technological platform that would support a new business model with very specific requirements in terms of the cloud platform and the technological architecture. For that reason, it chose a partner that could not only demonstrate that it had the requisite skill set and technical resources, but that it also understood the business challenges facing Correos, and was prepared to work in a close and flexible relationship, accompanying Correos through the different stages of the project. NTT DATA met all these requirements and this has enabled the project to successfully achieve all its key goals.

NTT DATA cloud adoption journey


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