The services will be provided in line with Capgemini’s Rightshore model, with service distributed between the UK, India and Poland from July 2007, following a transitional phase starting immediately.
The contract renews and extends existing arrangements between the two companies, currently based on services provided from Capgemini centres in the UK.
Matalan says that by accepting Capgemini’s Rightshore model, it will gain significant cost savings and further increases in IT efficiency and service quality.
At the same time, Matalan says it is confident that it is ensuring continuity of service and minimising risk by remaining with Capgemini as its prime IT service partner.
Pete Trainer, IT Director at Matalan, said: “We were impressed by the quality and professionalism of Capgemini’s Mumbai operations and reassured by its combination of a UK team on our doorstep with highly cost-effective support from India.
“Costs have already been reduced and quality boosted through working with Capgemini and we look forward to both these trends continuing and accelerating under the new arrangements.”
Under the new contract, Capgemini will be supporting all Matalan’s core business-critical applications from Mumbai, including point-of-sale, stock control and replenishment, merchandising, finance, human resources and office applications.
Service desk and desktop support services will be provided from a customer service centre in Krakow, Poland, and will support some 500 Matalan staff at the retailer’s Skelmersdale, Lancashire HQ, at its three distribution depots and at its 200 UK stores.
Capgemini will also be providing Matalan with IT infrastructure management and network infrastructure services.
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