Tesco Indian outsourcing explained

DATE: July 7th, 2008

SOURCE: ITExaminer.com

 

Mohit Soapbox:
There was a recent news clip about WalMart looking to set up a captive in Bangalore for their IT operations and how some of the largest retailers have preferred to go the captive route to set up operations in India. Retailers believe that the technology they have is a key ingredient for their success and want to keep it in house. The Tesco center seems to provide the traditional outsourcing services like payroll plus the core IT applications used by the retailer.

 

 

ARTICLE

Tesco’s 3,000 strong operation in Bangalore is at the heart of the major retailer’s worldwide operations, it has emerged.

 

The company is a familiar name in UK where it holds a dominant position in the retail industry. But the Indian arm of the retail major, Tesco Hindustan Service Center (HSC) plays a significant role behind the curtains. The multinational retail chain has its presence in more than 13 countries and recorded a huge turn-over of over $100 billion and - not surprisingly -  the major part of its global and back-end  services are offshored to India centre.

 

Last week, the CEO at the Bangalore Tesco, Meena Ganesh has decided to move on as reported in IT Examiner over the weekend. In a press statement, Tesco HSC said that Meena plans to chase her “dream” of playing a role of an entrepreneur once again after Meena got success for HSC since she joined in 2003.

 

Tesco HSC must be in a troubled waters after Meena’s decision to quit though it believes it will get a pefect replacement.

 

At the end of August, Meena Ganesh will spend her last day in the office. On asking about Meena’s replacement, Tesco HSC said that it is on the look out for a replacement externally and internally. Some names are doing the rounds but nothing has been confirmed yet.

 

Tesco HSC said: “We would like to thank Meena for the contribution she has made to Tesco over her 4 and half year career and wish her all success in her new venture”.

 

Meena Ganesh couldn’t be reached immediately for a comment and the Tesco HSC were unable to reveal any further details on her new venture.

 

Tesco HSC is the heart of Tesco that executes logistics‚ marketing and other aspects under three different segments – IT, business services and finance services. It provides operational support to Tesco’s customers, associates and employees across Europe, Asia and America.

 

Tesco HSC is the shared service centre that has a total strength of about 3000 employees and constantly growing in numbers.

 

It designs, develops and tests Tesco’s critical IT applications under the IT services such as integrating Tesco IT systems with its retail suppliers of electronic goods or providing stock updates to the store managers. The Operating Model is a common set of business processes and IT systems to meet the needs of Tesco stores irrespective of their location.

 

Under the business section, the Indian arm provides payroll services for employees in the UK. It generates worldwide sales for Tesco by utilizing online search tools and manages Tesco Pension Scheme. Architects and the engineers also design stores and plans support its Tesco stores across nations.

 

The finance team at Tesco HSC manages the financial transactions, reporting and control activities for Tesco’s global retail operations. X

 

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