BT Group, a U.K.-based telecom services provider, has brought on board Tata Consultancy Services Ltd. to transform the legacy technology infrastructure of its digital unit.
TCS will manage and decommission more than 70% of BT Group’s legacy technology to deliver £65 million in annualised savings by the end of fiscal 2025 and £145 million by 2027, according to a statement on the U.K.-based firm’s website.
The deal, whose financial details weren’t disclosed, will see about 400 BT Group employees join the Mumbai-based IT firm.
The strategic alliance is part of the U.K. firm’s aim to deliver £3 billion in gross annualised savings by the end of FY25.
“This is yet another transformative move to greatly simplify the BT Group legacy estate,” Harmeen Mehta, chief digital and innovation officer at BT Group, said in the statement. “It removes complexity and intensifies our strategic focus on delivering leading-edge tech to meet our customers’ needs and drive growth.”
BT Group and TCS have also agreed to develop joint go-to-market propositions in the coming months. That will also derisk and accelerate the group’s transition from legacy systems.
“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,” Debashis Ghosh, president of the business transformation group at TCS, said in the statement. “The deal presents a replicable model for other large enterprises seeking to pivot into the new, while mitigating operational risks.”
On Wednesday, shares of TCS fell 0.11% to Rs 3,380.60 apiece on the BSE, even as the benchmark Sensex ended the day 0.34% lower at 62,410.68 points.