Tesco signs $45m deal with CA Technologies

By Dawinderpal Sahota
30 Aug 2011 View Comments
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Tesco has signed a deal worth $45m (£28m) with CA Technologies to gain better visibility into its IT supply chain.

Tesco is implementing CA’s Service Operations Insight (formerly Spectrum Service Assurance), SysView Performance Management and Process Automation software to better manage and monitor its networks, suppliers, mainframe and credit card transactions. The solutions will sit across the entire Tesco Group, including Tesco Bank, Tesco.com and Tesco Mobile.

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Tesco admitted that monitoring its IT infrastructure is both time-consuming and complex, with 472,000 staff working in over 5,000 stores across 14 countries.

It had previously used a number of solutions from a range of vendors, but chose to consolidate on CA to provide customers with a consistent service experience.

"This deal will allow Tesco to map its infrastructure components and look at how they combine to support services. Tesco will also be able to identify any issues that might affect service delivery and fix any errors before they do so," explained Keith Andrews, account director at CA Technologies.

He added that the solutions will also give Tesco a platform to support the introduction of other services, such as handheld scanners and smartphones.

In terms of cost savings, Tesco said that the consolidation would remove the cost of solution integration, as the retail giant would rely on just one supplier, but it has not yet ascertained the magnitude of those savings.

"As it is still being implemented, it is difficult to get real data on what the savings will be. The cost saving in terms of protecting the brand by reducing poor customer experience is difficult to quantify," added Andrews.

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