A new outsourcing deal signed by retailer Matalan will cover its entire core IT service, which will be run from Capgemini’s facilities in the UK, India and Poland.

The contract renews and extends existing arrangements between Matalan and Capgemini, but marks the first time IT services will be provided offshore.

Matalan is expecting to gain significant cost savings and increased IT efficiency and service quality from the new deal. Business critical applications will be supported from Mumbai, India, including point-of-sale, stock control and replenishment, merchandising, finance, human resources and office systems.

Service desk and desktop support services for Matalan’s headquarters, three distribution depots and 200 stores will be provided from a Capgemini customer service centre in Krakow, Poland. The IT services firm will also provide IT infrastructure management and network infrastructure services.

Matalan IT director Pete Trainer said: “We were impressed by the quality and professionalism of Capgemini’s Mumbai operations and reassured by their combination of a UK team on our doorstep with highly cost-effective support from India.

“Costs have already been reduced and quality boosted through working with Capgemini and we look forward to both these trends continuing and accelerating under the new arrangements.”