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M&S outsources 250 tech roles in cost-saving initiative

Marks & Spencer has outlined plans to outsource 250 technology roles and place a further 30 into consultation, as part of a wider programme designed to transform it into a digital-first business and trim costs.

The retailer intends to shift its technology functions to principal partner Tata Consultancy Services (TCS), which will manage its core supplier services, as well as day-to-day relationship and project management of specialist suppliers.

Around 250 technology roles will transfer to TCS under TUPE regulations.

M&S added that “individual conversations will take place with around 30 individuals whose functions will be carried out differently in the future”.

It will retain a ”smaller, more technical and commercially-focused” in-house technology team.

A TUPE information and consultation process will commence with the retailer’s employee representative group on 16 January.

The change will form part of a wider technology transformation programme, designed to enable M&S to become a digital-first business.

It is investing £25m in a new operating model, which it will adopt from 1 March.

M&S said the programme, which being implemented as part of the five-year turnaround strategy implemented by chief executive Steve Rowe, will drive efficiencies in how it uses new technology. It aims to make annual savings of around £30m by 2021/22.

Rowe said: “We are committed to transforming M&S for our colleagues, customers and shareholders by delivering digital-first retailing across our stores and offices. Technology plays a huge role in this transformation – and having the right partners and model will enable us to be more agile, flexible and responsive.”

 

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