UK off licence chain, Threshers has signed a five-year deal with Xansa, to support its central IT systems and core applications management.

The deal covers 300 Threshers first-line support roles moving to Noida in India and is aimed at saving the company £1 million a year.

The outsourcer will provide applications management, IT operations and hosting for Threshers’ core SAP, Websphere and Business Object applications. It will also host Threshers’ JDA merchandising applications, which support the company’s strategic planning activities.

The contract, which starts in May 2007, will see Xansa work with hosting company, BSG and the IT support services provider, Phoenix to deliver the service.

Threshers chief financial officer, Harvey Ainley said: “The retail sector is probably one of the most competitive sectors to be in. This contract will allow us to drastically reduce the total cost of ownership of our IT infrastructure with provision for a flexible pricing model based on our business metrics.”

Threshers has been a heavy IT services user in past years, moving to a completely managed services model after installing key merchandising and replenishment software in 2003 to provide more effective management from its seven warehouses through to its 1,400 nationwide stores.

Xansa’s other UK retail clients, include Boots, B&Q and Kingfisher.