Boots signs £26m outsourcing deal top up

Health and beauty retailer Boots has extended its outsourcing contract with Xansa by another two years in a £26m deal.

The new deal extends the original seven year outsourcing agreement - signed in 2002 - by a further two years to 2011.

Xansa will also take responsibility for the Boots Advantage Card service, which will use the company's offshore capabilities.

The deal will bring Xansa an additional £26m over and above the initial £90m contract signed in 2002.

In 2002, Boots outsourced its information systems and technology operations to Xansa. The deal covers the retailer's central applications development and support. 

Xansa will provide application support and maintenance to all areas of Boots' business from the head office through the supply chain to store-based applications. 

It will also provide applications development, programme and project management, application architecture and business consulting services.

Boots IT director Rob Fraser said in a statement: "I am delighted that the new expanded relationship with Xansa provides a spring board that will enable further business benefit, and cost savings for the Boots IS&T operation."

And Xansa CEO Alistair Cox added in a statement: "Our relationship has been expanded to include the applications process for the Boots Advantage Card.  This business process outsourcing service uses our integrated offshore delivery capability and includes the applications management of the supporting IT systems."