Boots has expanded its outsourcing partnership with Xansa, with a contract extension worth £26m over two years.
Xansa will now take responsibility for the management and support of Boots' Advantage customer loyalty card.
The new contract at the cosmetics and medicines retailer extends a seven-year £90m IT outsourcing agreement, signed in 2002, by a further two years to 2011.
Rob Fraser, Boots IT director, said, "The new expanded relationship provides the company with a springboard that will enable further business benefits and cost savings."
As part of the £26m extension, Xansa will continue to provide application support and maintenance across the company, from Boots' head office through to its supply chain and on to its store-based applications.
Areas covered by the arrangement include applications development, programme and project management, application architecture and business consulting services.
Boots is a major user of SAP enterprise applications. It has deployed based on the SAP Business Information Warehouse for finance, human resources and datawarehousing.
The company also uses MySAP CRM to optimise interactions with its customers.