Health and beauty retailer Boots identified savings of £130 million over the next ten years after striking an IT outsourcing deal with IBM.
More than 400 Boots staff will transfer to IBM when the retailer hands over responsibility for managing and developing its systems infrastructure.
Chief executive Steve Russell said the expected cost savings of £13 million a year would be channelled back into improving technology.
The move comes as Boots attempts to revive its fortunes in the face of increased competition.
It is in the process of revamping 300 stores.
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