Outsourcing Times

October 25, 2004

Sainsbury Renegotiates IT Outsourcing Deal with Accenture

Sainsbury, the second-largest UK grocery chain, is in the process of renegotiating the $3.54 billion deal with IT service provider Accenture Ltd.

According to Computerworld:

In an attempt to drive down the price of the Accenture contract, Sainsbury will simplify existing IT systems as well as those in the pipeline, because the implementation effort has "failed to deliver the anticipated increase in productivity," while IT costs continue to eat up more and more of the company's overall budget in proportion to sales, Sainsbury said in a statement.

London-based Sainsbury signed a seven-year deal with Accenture in 2000 to outsource all of its IT operations. The pact led to the transfer of about 800 Sainsbury employees to Accenture.

Read more: Sainsbury, Accenture to Redo Outsourcing Pact

--
Did you enjoy this post?

October 25, 2004 in Software & IT | Permalink

Comments

The comments to this entry are closed.

« IBM Gets Dun & Bradstreet IT Outsourcing Deal | Main | IT Outsourcing Benefits Indian Business »