J Sainsbury completes UK’s largest ever IT insourcing from Accenture

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

J Sainsbury has just completed the insourcing of 470 IT staff, all 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 at a time when the contract had five years left to run.

Both the supermarket group and the outsourcer have spent the last six months transferring the people, the systems and the contracts with other IT suppliers back to J Sainsbury.

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 under new chief executive Justin King found that J Sainsbury would be able to recover more speedily if it regained direct control of its IT systems and staff.

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