The country’s leading software firm Tata Consultancy Services (TCS) today announced that it has signed a five-year information technology (IT) services contract with AGL Energy Ltd (AGL), Australia’s largest retailer of gas and electricity. With the contract worth A$16 million (Rs 52,33,16,425), TCS will manage and support all SAP applications for AGL, including AGL’s existing SAP ERP system and the SAP Industry Solution for Utilities, which is currently being implemented.

The decision by AGL to outsource all SAP applications maintenance and support is expected to reduce the implementation time of the new utilities module, and accelerate return on investment. “The decision to outsource our applications management and upgrade our systems is in line wth AGL’s strategy to streamline business operations and offer a competitive service,” AGL managing director Paul Anthony said.

TCS Energy and Utilities Practice vice-president Ajoy Mukherjee, said “TCS’ full service capability and domain expertise, together with our delivery methodology, will enable us to deliver sustained value and operational excellence to AGL.” TCS has a strong presence in Australia and New Zealand

The contract is predicted to save the Australian company about A$12 million a year, for five years. The decision will allow AGL to cut down it workforce and significantly reduce the cost of operations in running its existing information management systems. “With this deal, we will save an estimated A$12 million per year, assisting us to reduce the number of full time employees engaged by AGL in information technology support from more than 300 to about 20,” Anthony added.