Iceland cuts IT spend with outsourcing

Retailer extends managed services deal and hopes to get more cost predictability

Iceland tweaked its IT services contract to ensure stability of its IT platform

Supermarket chain Iceland has signed a £11.5m services deal to lower costs associated with running its technology set-up.

The seven-year deal with Getronics is an extension of the supplier's relationship with the retailer, which includes round-the-clock server hosting and systems management, service desk provision and PC and BlackBerry support.

The agreement also includes work on the firm’s technical architecture, database support and a managed print service.

According to Iceland, benefits from the outsourcing deal include flexibility in service support and cost predictability.

“The changes made to the contract have provided us with stability and security in terms of our IT platform in the current financial climate,” said Mark Pearson, IS director at Iceland.