Sainsbury(J) PLC
28 April 2006
28th April 2006
Sainsbury's and Accenture successfully transition IT functions back to
Sainsbury's
Sainsbury's and Accenture have today successfully migrated IT functions back to
Sainsbury's six months after agreeing to terminate their existing contracts.
This has involved the transfer of all assets, third party contracts and
approximately 470 colleagues into Sainsbury's and the two parties agreeing the
matters arising out of the IT outsourcing agreements to their mutual
satisfaction.
Both parties have worked together for the last six months to ensure that
customers, colleagues, IT development and the operational service provided have
not been affected during this transfer. Christmas, in fact, saw the best levels
of service in the past five years.
Sainsbury's will take an exceptional item of circa £65 million as a result of
the termination, which is in line with previous guidance. Sainsbury's said that
it expects that as a result of future cost savings the exit costs are expected
to payback in less than two years.
As previously reported, Accenture does not expect the transition to have a
negative impact on results from operations in its 2006 fiscal year.
Sainsbury's and Accenture will continue to work together in developing some of
Sainsbury's IT systems and the ongoing provision of on-line services.
Sainsbury's newly formed in-house team is now focusing on supporting the Making
Sainsbury's Great Again plan.
- Ends-
For enquiries:
Investor Relations Media
Lynda Ashton Pip Wood
+44 (0) 20 7695 7162 +44 (0) 20 7695 6127
Accenture Media
Mark Radvanyi
+ 44(0) 20 7844 5406
mark.radvanyi@accenture.com
Notes
1. Sainsbury's originally outsourced IT operations to Accenture in
November 2000.
2. The decision to terminate the outsource agreement was announced in 27
October 2005.
3. The Making Sainsbury's Great Again plan was announced on 19 October
2004.
4. Forward-Looking Statements
This announcement contains forward-looking statements relating to
Sainsbury's and Accenture's operations and results of operations, the
accuracy of which is necessarily subject to risks and uncertainties. Factors
that could cause actual results to differ materially from those expressed or
implied include general economic conditions and, in particular, in relation
to Accenture the factors discussed under the 'Risk Factors' heading in the
Business section of Accenture's most recent annual report on Form 10-K filed
with the Securities and Exchange Commission. Neither Sainsbury's nor
Accenture undertake any duty to update any forward-looking statements made
in this news release or to conform such statements to actual results or
changes in their respective expectations.
This information is provided by RNS
The company news service from the London Stock Exchange
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