BT Group's Digital Unit boosts capacity for strategic tech build with Tata Consultancy Services
Deal to manage and decommission BT Group’s legacy technology to deliver annualised savings of £65 million by end of FY25.
London, 7th December 2022 – BT Group today announces a new partnership for its Digital Unit that will transform the business’ approach to its legacy IT estate as part of its modernisation and simplification programme. 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% of Digital’s legacy technology estate.
The deal significantly simplifies and restructures Digital’s existing supplier relationships to deliver an annualised £65 million saving by the end of FY25, contributing to BT Group's ambition to deliver £3bn in gross annualised savings across the same timeframe. This saving is expected to grow to £145 million a year by 2027. A primary goal of the programme is to boost Digital’s capacity and focus to build its new strategic technology architecture faster, supporting the Group’s growth. It will also de-risk and accelerate the Group’s transition from legacy systems, an outcome structured into the deal.
As part of this deal, around 400 BT Group colleagues worldwide will have the opportunity to join TCS. TCS has an excellent track record of transitioning colleagues with these skills into transformative roles, and they will shape the team that will deliver the acceleration of our legacy decommissioning. In addition, colleagues moving to TCS will gain the opportunity to build long-term sustainable careers in an exciting technology business.
Harmeen Mehta, Chief Digital and Innovation Officer, BT Group said: “This is yet another transformative move to greatly simplify the BT Group legacy estate. It removes complexity and intensifies our strategic focus on delivering the leading-edge tech to meet our customers’ needs and drive growth.”
TCS was selected because it demonstrated it can bring the skills, scale, problem understanding and innovative approach needed to help accelerate BT Group on its journey to the future.
Debashis Ghosh, President, Business Transformation Group, TCS, said: "We are delighted to be selected by BT Group as their strategic partner to manage and upkeep their legacy application estate and to give BT the capacity for the accelerated build of its new strategic stack. This is a truly innovative and ground-breaking deal that presents a replicable model for other large enterprises seeking to pivot into the new, while mitigating operational risks.”
Mehta continued, “This is an exciting outcome for our colleagues. Those who transition will be given incredible opportunities working with a high growth partner on important transformations. Those who remain, will have more clarity and focus to build our digital future.”
Ghosh added: "We warmly welcome transitioning BT Group employees into the TCS family. We are confident they will benefit from the immense learning and growth opportunities we offer, and pursue long, fulfilling careers at TCS."
In addition to the specifics of the deal, BT Group and TCS have agreed to work together to develop joint go to market propositions in the coming months.
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About Tata Consultancy Services (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile™ delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest multinational business group, TCS has over 616,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $25.7 billion in the fiscal year ended March 31, 2022, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index.
For more information, visit www.tcs.com
BT Group is the UK’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services. We also provide managed telecommunications, security and network and IT infrastructure services to customers across 180 countries.
BT Group consists of four customer-facing units: Consumer serves individuals and families in the UK; Enterprise and Global are our UK and international business-focused units respectively; Openreach is an independently governed, wholly owned subsidiary, which wholesales fixed access infrastructure services to its customers - over 650 communication providers across the UK.
British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange.
For more information, visit www.bt.com/about
