Matalan cuts cost with offshoring

Mumbai and Krakow measure up

By Julian Goldsmith, 12 April 2007 12:39

NEWS

Value fashion retailer Matalan has signed a six-year contract with Capgemini to offshore core IT systems to India and Poland.

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Under the contract, Capgemini will support all of Matalan's applications from Mumbai, including point-of-sale, stock control and replenishment, merchandising, finance, human resources and office applications. Service desk and desktop support will come from a Capgemini service centre in Krakow.

Up to 500 Matalan staff will be supported in the retailer's Skelmersdale HQ, three distribution centres and 200 stores.

Capgemini will also be providing Matalan with IT infrastructure management and network infrastructure services.

Previously Capgemini had supported the retailer from its centres in the UK.

In a statement, Matalan IT director Pete Trainer said the retailer was reassured by Capgemini's combination of a UK team on its doorstep with "highly cost effective" support from India. He said costs have already been reduced and quality boosted through working with Capgemini and that those trends would continue.

The contract commences in July. The cost of the deal was not revealed

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