Dave Lewis, Group IT Director, Hargreaves Services, tells us how a bold IT transformation enabled the company to pivot from coal mining to a diversified, future-facing business. By partnering with Principle Networks, Hargreaves built a scalable, secure infrastructure that now supports its ambitious growth across multiple sectors.
In 2020, Durham-based Hargreaves Services, one of the last remaining coal mine operators in the UK, began to wind down its mining operations. With carbon reduction plans meaning that demand for coal was heading towards zero, the leadership team embarked on a brave new long-term strategy to pivot away from coal and instead leverage its land development, services and industrial expertise.
Underpinning this diversification strategy would be the creation of a new IT infrastructure capable of supporting a business with ambitious growth plans.
Dave Lewis, Group IT Director, Hargreaves Services, said: “Principle Networks go beyond providing technical solutions. From the moment we started the different projects, the team understood our needs, and they weren’t at all phased by the scale of the transformation. They understand that any new IT platform must support long-term business objectives to deliver value, and that’s exactly how we approached it.”
The challenge
Hargreaves wasn’t just implementing a new IT infrastructure. It was changing the direction of the entire business. It went from being a single entity to an organisation comprising a number of sub-divisions across several locations. For example, land development, environmental, logistics and minerals businesses, materials handling operations, mechanical and electrical maintenance services, an earthworks organisation working on HS2, creation of Hargreaves Asia with contracts to work with China Light and Power and Hong Kong Electric, and the acquisition of a civil engineering business working primarily in the water industry.
Hargreaves required an IT strategy that was agile, scalable, and able to support Digital Transformation and sharing large amounts of data. Furthermore, it was also becoming a customer-facing business, so it needed a robust, secure network that could handle internal and external traffic.
To become a forward-thinking company of the future, Hargreaves needed to shift from traditional office-based connectivity and fully managed private MPLS networks, based in on-premise data centres, to an SD-WAN and cloud environment.
Lewis said: “Principle Networks delivered an infrastructure that has enabled the business to move forward and achieve its goals.”
The method
Principle Networks worked with Hargreaves to audit its systems and then redesign internal and external IT operations to keep pace with its rapid business development. The team created a plan to redesign the existing wide area network, upgrade its data centres and shift several processes and systems to a cloud environment. They provided recommendations on the systems to implement, the technology required and what to do with old hardware. This helped to achieve quick sign-off from the board so that the Digital Transformation could get underway.
Hargreaves Group IT has transitioned from a legacy Cap-Ex model to an Op-Ex-based function, replacing the purchase of hardware and software with subscription-based agreements.
The most important aspect of the implementation process was ensuring Business Continuity. The team recommended tried and tested technologies that gave Hargreaves the confidence that business would continue without disruption. In terms of providing a solution that offered scalability, Principle Networks worked closely with the Hargreaves IT team to ensure they built a platform that could meet both their immediate and future requirements.
Implementing new systems meant Hargreaves also needed to develop a strategy for securing its infrastructure, data protection and information security. Principle Networks specialist engineers installed comprehensive firewalls and cybersecurity monitoring tools to ensure data could be exchanged securely between workstreams.
The outbreak of the global pandemic accelerated Hargreaves’s transformation. When lockdowns were enforced, it had already been working with Principle Networks to build a robust, secure and reliable network, meaning hundreds of employees could shift to remote working virtually overnight.
The final stage of the implementation process was to achieve compliance certification, so all new systems and networks had to be designed with this in mind. Hargreaves worked with the team at Principle Networks to implement systems and processes that were compliant with current laws and regulations.
The results
When Principle Networks began working with Hargreaves in 2018, its annual spending on IT infrastructure was over £395,000. In 2023/24, that figure is estimated to be no more than £135,000, a 66% reduction in spending, which has saved the business more than £260,000. This money has been reinvested in cloud computing, connectivity and security solutions, several managed by Principle Networks.
Furthermore, implementing the new SD-WAN cloud environment has enabled Hargreaves to continue its expansion and acquisition of services without compromising the level of service its customers receive. In just six years, Hargreaves has transformed from a UK-based coal supplier to an expert in land development, infrastructure services, environmental and industrial projects.
Lewis said: “Working with Principle Networks has been integral to us achieving our Digital Transformation goals. Without their expertise, we wouldn’t be the business we are today. We’re excited about what the future holds and the next stage of this partnership.”
We asked Dave Lewis, Group IT Director, Hargreaves Services, further questions to find out more about the project.
How did the shift from MPLS to SD-WAN and cloud-based cybersecurity platforms benefit Hargreaves Services in terms of business continuity and scalability?
Following initial strategy talks in 2018 with Principle Networks, Hargreaves Services adopted a cloud-first strategy in all aspects of infrastructure, core business and core security applications. Scoping out a long-term plan, this project provided Hargreaves with an agreed deployment structure which ensured that Business Continuity was maintained as the SD-WAN platform was built. The deployment resulted in improved security, quality of service and cost efficiency and looked at leveraging multiple connection types including the capability of rolling out satellite (Starlink) and 5G solutions to many of Hargreaves’ remote sites. The project also introduced a consistent solution which can be rolled out on a site-by-site basis reducing mobilisation programmes and extended delivery times.
What were the key challenges Hargreaves Services faced during the transformation and how did Principle Networks help address them?
The key challenges included the overall transition and detailed configuration, based upon core business requirements, ensuring security and future proofing the platform in readiness for the cloud solutions to follow. Allocation of resources worked to reduce risk around planned downtime and/or disruption. A key point here was the teamwork between Principle Networks and Hargreaves as Principle managed Hargreaves’ MPLS circuits across 30-plus site/connections. A further challenge was in ensuring that performance was maintained – this became a key aspect of the project, with critical applications requiring dedicated support from both parties. Regular meetings, access to Principle Network resources, project progress, action points agreed and updates when resolved all helped to mitigate this challenge.
Can you elaborate on the decision to move from a Cap-Ex model to an Op-Ex-based function and the impact this had on Hargreaves’ IT spending?
Hargreaves’ took the decision several years ago, in 2018, to move to the cloud-first strategy, looking at where the market was moving and how technology was evolving. Reducing the annual Cap-Ex year-on-year allowed Hargreaves to focus on improved core business and security applications, enter extended contracts with trusted partners, reducing risk to the business, as Principle became part of the extended Hargreaves Group IT team. Partners took ownership, and responsibility, in ensuring that applications were fully supported, maintained, and were operating on the latest firmware, versions and or latest the release. While cashflow is an important business practice, in this case it was not a key objective – cost efficiency was. Reduction in Hargreaves’ capital expenditure was well received along with the foresight in how the IT team was looking to manage, and control, overall IT spend.
How did the global pandemic affect the timing of Hargreaves’ IT transformation, and how did the infrastructure already in place help during the transition to remote working?
Hargreaves could not have been better placed. The group IT strategy from 2018 had focused upon network infrastructure, security and connectivity. Come March 2020, 500-plus users had the ability to work remotely, from home, safely and securely, communicating with both internal and external parties. There was little to no impact on the business with no downtime and no disruption. Nothing good ever comes from a global pandemic, but what Hargreaves Services had been provided with was a ‘real live event to stress test where they were at with their IT transformation’. The results were impressive, providing the team with a solid foundation to push on with the next phase.
Looking ahead, how do you see the ongoing partnership with Principle Networks contributing to Hargreaves’ future growth and technological advancements?
From strength to strength. We are already in discussion regarding improved ways of working, looking at different technologies and different pricing structures, with the aim of delivering against both the Hargreaves Services business and IT strategies. With regular meetings, we review not only the Hargreaves Services business strategy, but we also focus upon the Principle Networks growth strategy and business roadmap, which includes current, and potential, partner programmes.
