Sainsbury signed a seven year contract outsourcing all its IT functions to Andersen Consulting this week. IT spending had reached £200m per year. Sainsbury said it will save £35m over the lifetime of the contract. Andersen takes on responsibility for all aspects of IT, including employees, developing new systems and managing third party contracts. Chief executive Sir Peter Davis said: "We are confident Andersen will help us achieve real competitive advantage and cost reductions." {{NEWS }}

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