Supermarket giant Tesco has extended an £18m outsourcing contract with Xansa for application management, software development and consultation.

The outsourcing deal is intended to reduce the cost of core IT operations, allowing it to focus investment on its retail offering and improving customer service.

Xansa will support Tesco’s critical systems, such as distribution, stock replenishment, products, pricing, and payroll systems, across the UK and Ireland.

‘Xansa provides expertise in applications management, in-depth understanding of our business and commitment to working together to deliver our key outcomes,’ said UK IT director Mike McNamara.

The extension is an endorsement of the work it has been doing for Tesco over the past 18 years, says Xansa’s chief executive Alistair Cox, and provides an opportunity to support its IT strategy further.

‘Tesco is one of the cornerstones of our retail business and throughout this long relationship, we have continuously provided it with innovation and service improvement,’ he said.