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Tesco puts £18m in Xansa's basket
Three-year contract extension - every little helps

By Julian Goldsmith

Published: Tuesday 08 May 2007

Retail giant Tesco has extended its tech contract with outsourcing company Xansa for a further three years and an additional £18m.

The contract covers support and development of Tesco's applications, including distribution, stock replenishment, products and pricing. It also supports Tesco's UK and Republic of Ireland payroll systems as well as providing general sales information. Xansa has an 18-year relationship with the retailer.

Xansa's services are provided in the UK and offshore in India, where it is one of a number of Tesco's offshoring partners, along with the likes of Infosys and Wipro.

In a statement, Tesco UK IT director Mike McNamara said: "Xansa provides us with expertise in applications management, an in-depth understanding of our business and commitment to working together to deliver our key outcomes."

The contract extension comes on the heels of another win for Xansa in the retail space. In March, off-licence chain Threshers handed over core IT operations to the company in an £8m deal.