28th Apr 2006 13:00
Sainsbury(J) PLC28 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 toSainsbury's six months after agreeing to terminate their existing contracts.This has involved the transfer of all assets, third party contracts andapproximately 470 colleagues into Sainsbury's and the two parties agreeing thematters arising out of the IT outsourcing agreements to their mutualsatisfaction. Both parties have worked together for the last six months to ensure thatcustomers, colleagues, IT development and the operational service provided havenot been affected during this transfer. Christmas, in fact, saw the best levelsof service in the past five years. Sainsbury's will take an exceptional item of circa £65 million as a result ofthe termination, which is in line with previous guidance. Sainsbury's said thatit expects that as a result of future cost savings the exit costs are expectedto payback in less than two years. As previously reported, Accenture does not expect the transition to have anegative impact on results from operations in its 2006 fiscal year. Sainsbury's and Accenture will continue to work together in developing some ofSainsbury's IT systems and the ongoing provision of on-line services.Sainsbury's newly formed in-house team is now focusing on supporting the MakingSainsbury's Great Again plan. - Ends- For enquiries: Investor Relations MediaLynda Ashton Pip Wood+44 (0) 20 7695 7162 +44 (0) 20 7695 6127 Accenture MediaMark Radvanyi+ 44(0) 20 7844 [email protected] 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 ExchangeRelated Shares:
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