A year ago David Carter argued that Sainsbury's had to take its IT development back in-house from outsourcer Accenture. "Perhaps in future years the Sainsbury's case will be quoted in business schools as the textbook example of how a company destroyed itself by outsourcing its IT," he wrote. With Sainsbury's this month announcing the end of the Accenture contract, he speculates on what is going to happen next.
"Supermarket giant Sainsbury's is set to terminate its IT outsourcing contract with Accenture five years early and take its systems back in-house.
"In 2000 the company signed a 7 year deal valued at 1.7bn with Accenture, to transform its IT operations and improve the efficiency of the business. In 2003 the contract was extended to 2010, and its value increased to 2.1bn.