Sainsbury’s transfers IT back in-house

Sainsbury’s has completed the insourcing of 470 IT staff, its IT assets and its third-party contracts from outsourcing supplier Accenture.

Sainsbury’s has completed the insourcing of 470 IT staff, its IT assets and its third-party contracts from outsourcing supplier Accenture.

The UK’s third-largest supermarket group cancelled its £1.7bn outsourcing contract with Accenture last October, when the contract still had five years left to run.

Sainsbury’s and Accenture have spent the last six months transferring the people, the systems and the contracts with other IT suppliers back to the supermarket group.

In a statement, the company said, “Sainsbury’s will take an exceptional item of circa £65m as a result of the termination. As a result of future cost savings, the exit costs are expected to pay back in less than two years.”

The decision to insource was made after an operational review found that Sainsbury’s would be able to improve logistics and other operations if it regained direct control of its IT systems and staff.

Sainsbury’s and Accenture will continue to work together in developing some of Sainsbury’s IT systems and the ongoing provision of online services.


 

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