DIY retailer B&Q is to outsource its application development to technology services specialist Xansa.

The outsourcer's retail industry experience will be key to the 'year-on-year savings' it is promising to deliver under the terms of a three-year contract.

The deal will injvolve a combination of off and onshore outsourcing resources from Xansa used for project management, streamlining systems development and matching extra system and skills provision to the changing needs of B&Q.

Peter Frederico, B&Q systems development and software support said: 'This new partnership with Xansa will help B&Q ensure that our critical systems are delivered effectively and efficiently.'

Phil Codling, outsourcing analyst for research firm Ovum commented: '[This is] a good bread'n'butter deal for Xansa. The UK market continues to offer up opportunities for new business in applications-led outsourcing.

Financial terms of the contract have not been disclosed, but Codling puts it at over £10m.

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