The original deal, signed in 2002, saw IBM take over the renewal and management of Boots’ IT infrastructure, including its data center, data networks, telecoms, and in-store systems. However, Boots announced in March this year that it was renegotiating the terms of the contract, claiming that the overhaul was running ahead of schedule.
Reports suggest that the employees returning to Boots would be responsible for a number of areas including help desk services, electronic point-of-sale software development, and business analysis.
Despite its decision to scale back its deal with IBM, Boots remains committed to outsourcing. In September last year, the retailer extended its contract with Xansa Plc by a further two years, with the deal now scheduled to end in 2011. In April, Boots also signed a seven-year payroll and human resources outsourcing agreement worth over 16m pounds ($30.2m) with Northgate Information Solutions.
