Tesco extends outsourcing contract with Xansa in £18m deal

Tesco has extended its applications management outsourcing contract with Xansa in an £18m deal.

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Tesco has extended its applications management outsourcing contract with Xansa in an £18m deal.

The retail giant has been outsourcing to Xansa for 18 years as part of a strategy of holding down core IT costs. The new contract extending the arrangement for a further three years.

Xansa staff in the UK and India will provide application development and support across Tesco’s UK and Ireland distribution, stock replenishment, product, pricing and payroll systems.

Mike McNamara, Tesco’s UK IT director said Xansa had “an in-depth understanding” of the retailer’s business. “We are therefore pleased to be extending our relationship with Xansa for a further three years.”

Tesco has a background of IT innovation, pioneering the development and use of a “Tesco in a box” suite of operating systems that can be rolled out in new stores anywhere in the world. The retail giant’s IT systems are underpinning record profits and continuing international expansion, with a first US store set to open later this year.

Last week Tesco launched a tie-up with online belongings registry MyThings to provide customers of its non-food Tesco Direct website with free documentation portfolios for their newly purchased items.

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