British American Tobacco has signed a deal with Indian outsourcer Wipro for application services, as it proceeds with a project to standardise its IT.

The multi-year agreement is aimed at improving the quality and productivity of the software used in BAT’s support services, as well as cutting costs. The value of the contract was not disclosed.

Wipro will attempt to standardise processes and methodology within BAT’s application services. The services will cover the 130 countries in which BAT operates, including its headquarters in London.

BAT extensively uses SAP and Siebel software, as well as a VMware server management platform, Microsoft SQL Server for database management, and IBM Lotus Domino for email.

Ben Fourie, head of global IT services at British American Tobacco, said the deal would “facilitate better [software] integration, enable enhanced knowledge sharing and, ultimately, help us become more competitive”.

Last year, BAT signed a five-year application development deal with Accenture covering areas including finance, supply chain, sales and marketing.

The company said a year before that it had cut the number of local SAP enterprise resource systems it uses from 62 to six, removing £549 million from supply chain costs, and £13 million from annual application support and development expenditure. Using the SAP platform, it is setting up finance shared services centres in western Europe and other regions.