On Wednesday, BT Group announced that its Digital unit has partnered with Tata Consultancy Services (TCS) to modernise the legacy IT estate. TCS would be working with BT Group to ramp down over 70% of its Digital's legacy technology estate. This is a part of BT's modernisation and simplification programme. The deal would help BT in increasing savings over the coming years. According to the company, the deal would simplify and restructure its Digital's existing supplier relationships, which would help in annual savings of £65 million by the end of FY25. This would increase to £145 million by the end of 2027. The partnership would contribute to BT's ambition of delivering around £3 billion in gross annualised savings across the same timeframe.
BT Group's Digital unit will be able to boost its capacity and focus on building new strategic tech architecture faster with this partnership. As part of the deal, over 400 employees of BT Group worldwide would also get the opportunity to join TCS. TCS will be shaping the team that will drive the acceleration of BT Group's legacy decommissioning.
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."
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."
According to a TOI report, the deal between TCS and BT Group is worth £250 million or Rs 2500 crore. Neither of the companies confirmed the deal amount.