Around 400 BT Group employees will be transferred to Tata Consultancy Services as part of a contract to establish the British telecom 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 percent of Digital’s legacy technology estate,” BT Group said in a press release.
According to the press release, the deal aims to simplify and restructure the Digital Unit's existing supplier relationships to deliver an annualised £65 million savings by the end of FY25, contributing to the BT Group's ambition to deliver £3 billion in gross annualized savings over the same timeframe.
“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,” according to the UK-based telecom company.
As part of the deal, around 400 BT Group colleagues worldwide will be given the opportunity to join TCS.
Tata Consultancy Services (TCS) is one of the world's leading multinational information technology service and consulting firms. It is based in Mumbai, India, but has offices all around the world. TCS is well-known in the areas of e-governance, banking and financial services, telecommunications, education, and healthcare.
TCS is a key company in the information technology industry. It currently employs over 600,000 people and has a market capitalization of more than $200 billion.
Tata Consultancy Services was founded in 1968 as one of India's first IT firms. National banks were among its early clients. Its experience in the financial services market stems from its history with the major company finance sector since the early days of computers.