Marks & Spencer outsources 250 jobs to Indian giant under IT overhaul

Retail giant Marks & Spencer is outsourcing more than half of its 430-strong IT team in a move that will cut costs by around £30 million a year.

The group said around 250 roles will transfer to Indian giant Tata Consultancy Services (TCS), although they will remain based at the firm's IT headquarters at Stockley Park in Middlesex.

The firm will consult with 30 of those transferring over their roles, which are set to change following the move, either due to location or function.

M&S chief executive Steve Rowe is leading a turnaround at the retailer to boost profits and sales (M&S/PA)
M&S chief executive Steve Rowe is leading a turnaround at the retailer to boost profits and sales (M&S/PA)

It said these staff may choose to leave the business, but stressed it was not launching a redundancy or voluntary redundancy programme.

The group will retain a small in-house IT team of around 170 people following the overhaul, which is set to take place from March 1.

It comes as part of a five-year turnaround plan being led by chief executive Steve Rowe, which is already seeing a raft of shops shut and a withdrawal from international markets.

Mr Rowe said: "Technology plays a huge role in this transformation - and having the right partners and model will enable us to be more agile, flexible and responsive.

"Through our technology transformation programme our business will be faster, simpler and more focused on achieving a seamless customer experience."

As the firm's main IT partner, TCS will take charge of M&S's IT supplier base, the group said.

M&S also aims to simplify its IT supplier base as part of the overhaul.

The plans will save around £30 million a year by 2021-22, but the group will take a one-off hit of £25 million.

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