Tata Consultancy Services (TCS), an Indian IT service provider, has won a USD 16 million information technology outsourcing (ITO) contract from AGL Energy, an Australian gas and electricity retailer. The contract is in line with AGL’s IT change program, under which it plans to outsource its in-house IT operations.

AGL’s major IT change program will enable it to generate cost savings worth USD 60 million per year after the implementation of its new retail solution. The contract with TCS will support AGL’s plans of executing its major IT change program.

The deal is expected to generate cost savings worth USD 12 million per year for AGL over the next 5 years. Moreover, it will allow AGL to reduce its in-house IT support staff from about 300 to 20. According to an AGL spokesperson, the deal will also support the company’s newly integrated retail platform.