Whitbread has signed a 'multi-million pound' business process outsourcing deal with Steria, which aims to deliver a 14 per cent reduction in annual service costs for the leading UK-based hospitality and catering company.
Whitbread operates well-known high street brands including Premier Inn, Brewers Fayre and Beefeater, and has an annual turnover of £1.8 billion.
Steria has worked with Whitbread for the past twenty years. The extension to the agreement covers outsourcing of a wide variety of business processes, including VAT, reporting, reconciliation, general ledger and accounts payable and receivable.
"Choosing to renew our contract with Steria was an easy decision to make. In the current economic climate, we need to ensure efficiencies are made across the business and with Steria we know that this is the case," said Andrew Pellington, finance director at Whitbread.
This is the second big deal for Steria in recent months, where it announced just before Christmas that it had extended its ten year partnership with Boots by up to an additional five years.
Under the Boots deal Steria will be providing application management for 350 business critical applications.
John O'Brien, research director at analyst house TechMarketView, said that the deal with Whitbread, which requires a 14 per cent reduction in annual service costs, highlights a growing trend that business process outsourcing suppliers are having to take on an "increased level of risk and flexibility in pricing and delivery options."
Sign up for CIO Asia eNewsletters.