Around 400 BT Group employees worldwide will move to Tata Consultancy Services as part of a deal to set up the British telecommunication company’s digital unit.
“Building on Digital’s wider strategy to transform and accelerate the Group, the new deal will see Tata Consultancy Services (TCS) work with BT to manage and ramp down over 70 per cent of Digital’s legacy technology estate,” BT Group said in a press release.
The deal aims at simplifying and restructuring the Digital Unit’s existing supplier relationships to deliver an annualised £65 million saving by the end of FY25, contributing to the BT Group’s ambition to deliver £3bn in gross annualised savings across the same timeframe, according to the press release.
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“This saving is expected to grow to £145 million annually by 2027. A primary goal of the programme is to boost Digital’s capacity and focus on building its new strategic technology architecture faster. It will also de-risk and accelerate the Group’s transition from legacy systems, an outcome structured into the deal,” said the UK-based telecom company.
As part of the deal, around 400 BT Group colleagues worldwide will have the opportunity to join TCS.
Harmeen Mehta, Chief Digital and Innovation Officer, BT Group, said: “This is yet another transformative move to simplify the BT Group legacy estate greatly. It removes complexity and intensifies our strategic focus on delivering leading-edge tech to meet our customer’s needs and drive growth.”
Debashis Ghosh, President of Business Transformation Group, TCS, said: “We are delighted to be selected by BT Group as their strategic partner for the management and upkeep of their legacy application estate and to give it the capacity for the accelerated build of its new strategic stack. The deal presents a replicable model for other large enterprises seeking to pivot into the new, while mitigating operational risks.”