Sainsbury's has scrapped its £2.1bn outsourcing agreement with Accenture, one of the largest such deals in the UK, to bring its technology back in-house.
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The retailer has terminated the agreement five years early, saying that it expects to quickly recover the exit costs of the contract.
Sainsbury's said the original contract, which aimed to save £35m a year, had been instrumental in improving its IT capability and had delivered cost reductions and improvements in system stability.