Asda IT staff shuffled off to TCS amid messy tech divorce from Walmart
- Reference: 1718625609
- News link: https://www.theregister.co.uk/2024/06/17/asda_tupe_tcs/
- Source link:
According to documents seen by The Register , a collective consultation for a staff transfer under [1]TUPE – an arrangement by which employment rights are protected under UK law – begins today (June 17).
The UK's third-largest supermarket expects affected staff to meet line managers from June 24, while the transfer date is set for September 16. Contractors will be let go at the end of their current contracts.
[2]
Asda employs around 5,000 staff in its UK offices. Between 130 and 135 members of the IT team have entered the collective consultation to move to TCS.
[3]
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An Asda spokesperson told The Reg : "We are building world-class systems in a once in a generation IT transformation – Project Future – to separate Asda from Walmart's legacy systems. Project Future will deliver a step-change in our data capabilities, our customer experience, and competitive edge. Put simply, it is a key building block of our strategy that will set Asda up for long-term success.
"As part of this process, we have taken the difficult decision to propose some changes to our technology function to ensure we have the necessary skills and capabilities in place to support these new systems. We have opened a collective consultation with colleagues impacted by this proposed change and will do all we can to support them during this process that they may find unsettling. We are fully on track to complete the three-year Project Future program by the end of this year."
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It will be up to affected staff whether they accept the offer of employment with TCS or opt for a redundancy package from Asda.
The move came as private equity company TDR Capital gained majority ownership of the supermarket group. It was acquired from Walmart by the brothers Mohsin and Zuber Issa and TDR Capital in February 2021 at a value of £6.8 billion. The US retail giant retained "an equity investment."
[6]SAP customers may struggle to escape ECC before support shutters if they don't start now
[7]Google goes shopping for Indian e-commerce dominance … at Walmart
[8]Walmart runs creepy 'advergame' on Roblox, where kids can make toy wish lists
[9]Asda's delayed SAP migration forces extension to Walmart's backend support contract
Project Future is a massive shift in the retailer's IT function. It is upgrading a legacy ERP system from SAP ECC – run on-prem by Walmart – to the latest SAP S/4HANA in the Microsoft Azure cloud, changing the application software, infrastructure, and business processes at the same time. Other applications are also set to move to Azure, including ecommerce and store systems, while Asda is creating an IT security team for the first time – the work had previously been carried out by its US owner.
Asda signed up to [10]SAP's "RISE" program in a deal to lift, shift, and transform its ERP system – a vital plank in the German vendor's strategy to get customers to the cloud – in December 2021. But the project has already been beset by delays.
The UK retailer had signed a three-year deal with Walmart in February 2021 to continue to support its existing system, but was [11]forced to renegotiate to extend the arrangement , saying it planned to move away from the legacy systems before the end of 2024.
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Although one insider told El Reg that deadline was "totally unachievable," the Walmart deal extends to September 2025, giving the UK retailer room to accommodate further delays without renegotiating the contract.
An email seen by The Register suggests a downbeat mood in the IT team, with some managers expressing disappointment and saying the team did not deserve its fate. It suggested Asda's management had yet to understand the magnitude of task it has taken on in the IT transformation.
Asda has yet to migrate a single store to the new infrastructure. The first – Yorkshire's Otley – is set to go live by the end of June.
One insider pointed out that project managers were trying to book resources from the infrastructure team for later this year and into the next, but, as they were set to transfer to TCS, the infrastructure team did not know who would be doing the work or what resources would be available.
"They have a thousand stores to migrate and they're going to be doing that with an infrastructure team who have their eyes on the door. They'll be very professional, but they're not going above and beyond and doing on-call they don't have to do," the insider said. ®
Get our [13]Tech Resources
[1] https://www.gov.uk/transfers-takeovers
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZnBdqsm1Pxh4-YSwxonzKwAAAEo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
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[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZnBdqsm1Pxh4-YSwxonzKwAAAEo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZnBdqsm1Pxh4-YSwxonzKwAAAEo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2024/06/12/sap_ecc_support_deadline/
[7] https://www.theregister.com/2024/05/27/google_invest_flipkart/
[8] https://www.theregister.com/2023/01/25/walmarts_advergame_on_roblox_pushes/
[9] https://www.theregister.com/2024/01/23/asda_sap_delay/
[10] https://www.theregister.com/2021/01/29/rise_with_sap_presentation/
[11] https://www.theregister.com/2024/01/23/asda_sap_delay/
[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/databases&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZnBdqsm1Pxh4-YSwxonzKwAAAEo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[13] https://whitepapers.theregister.com/
Re: Run away!
...they've got form for it.
Or is it "they've got a form for it."?
Re: Run away!
Which reminds me that TCS sponsor the London marathon....
Re: Run away!
> It will be up to affected staff whether they accept the offer of employment with TCS or opt for a redundancy package from Asda.
A redundancy package is very generous*. Normally declining a TUPE is treated like a resignation.
[*] generous in HR terms
Re: Run away!
Typical, outsource to the cheapest (always offshore) lose skills but all that matters is there is a contract in place.
That they people who eventually end up delivering (ha ha) that service ore usually beyond useless is irrelevant.
In the job I do I often end up having to interact with third party techies provided by the outsourcing giants. The level of skills and competence is just mind-blowing.
Having to explain to people the most basic of PowerShell commands.
Incapable or connecting to an RDP session or logging into Linux using Putty or similar.
DNS (the solution is always to edit the local hosts file).
There was one call I was on and someone from management at then end said to us "what a bunch of f*****g halfwits, but that is what we pay for". People know this, expect it yet keep doing it.
How press quotes are carefully fashioned
AC. Hey, ChatGPT, the company press office has been shut down to save money. Can you give me some meaningless buzzword bingo quote on what we're doing? Nice and upbeat, so less focus on the world's largest retailer deciding we're beyond salvation and have sold us on to private equity chancers, nothing that we're doing this only as an evil necessity, or that we're happy to see the back of 100 tech oiks whose jobs we don't understand or value.
Hi there, Anonymous coward. How's this? "Blah blah blah world-class blah blah once in a generation blah blah blah transformation blah blah Project Future blah blah blah step-change blah blah data capabilities blah blah customer experience blah blah blah competitive edge blah blah long-term success" blah blah skills and capabilities blah blah new systems blah blah will do all we can to support them during this process that they may find unsettling. Err hold on, AC, this is bullshit right? You knew it was going to be bullshit all along. I hope you're not going to soil my ChatGPT brand with this claptrap?"
Re: How press quotes are carefully fashioned
Orca 2 (Full) gave me
"We are streamlining our operations to enhance efficiency and focus on our core values, while continuously striving for innovation and excellence in everything we do."
I have to say, as a BS generator, it is pretty impressive.
Just bookmarking [1]this for possible future reference.
[1] https://pbs.twimg.com/media/B7P5xI2CAAAHMr0?format=jpg&name=small
outsourcing to India, because shareholders don't care that the core IT is done for pennies and crashing every 5 seconds.. and nor do TCS!
TAX the companies that outsourcing abroad
Can we TAX Outsourcing abroad, as it takes a job away from UK?
Re: TAX the companies that outsourcing abroad
"Can we TAX Outsourcing abroad, as it takes a job away from UK?"
Fairly easy to implement duties on imported services, but we have governments that are of the view that anything that reduces company costs is better for the economy, and we have world leading services sectors such as finance, law, advisory specialisms that all rely on freedom to offer services internationally. It won't work well to try and levy duties on imported services, whilst arguing for duty free access to overseas market. I'm not sure what the balance of cost/value is between offshored jobs and the international value to the UK economy of the City (in its broadest sense), government should know and act accordingly, but given the reckless incompetence of the past thirty plus years I doubt politicians even consider the question.
Just as we threw our industrial workers under the bus of international market forces, we're now about halfway through doing the same for white collar jobs.
They'll outsource those TUPEd staff after a year or so to somewhere cheaper.
The disposal of Asda was announced in September 2020. Three and a half years later they're still reliant upon Walmart for critical IT. My guess is that Walmart have notified Asda of an end date (or an intention to hike the price dramatically), and there's been a reckless panic to find a way of replacing the core systems. As is usual in these situations, there's been lots of faffing, plenty of farting, but precious little progress, and apparently got through multiple very short lived CIOs and CTOs. The board having decided they can't do the job in house, they've cast around for somebody to do the impossible in a few months. Along come the usual outsource vendors, all promising the unbelievable, and Asda management have gone "wow look, these guys can do everything we want in a few weeks, and they'll do for less than it costs us now. We're lucky to find a technology partner with so much experience of building retail IT systems from the ground up!"
At some point in the future the bitter reality will become apparent.
Sadly I doubt that Asda will be able to sell us the popcorn for us to sit and watch it unfold.
Cake, and eat it too.
Never understood this.
(1) Massive "bet the company" business project (of which IT is a major part) AND (2) show IT the door?
Low morale is just the start. IGDAF will already be there. We ALL know, the affected IT knows, what happens once the contracted/statutory transfer period is over. The best people are about to walk, the middle people are preparing to walk and the rest ... will ride out the time. Information and business knowledge is already lost. Just because you build a new process does NOT mean you don't need old knowledge? "How do we file that P493910/4 form with 'this authority' ... sorry, John/Joan from IT already left, they knew how to do it".
Also, the rest of the company will see what they are doing and will see "You're next".
Bring in new IT, even outsourced. This can work. And then pick the best at the end of the project. Then you have a fighting chance of getting this project off the ground.
Boom -- >
Because that's what it will do. And, also, what should happen to the knuckle-dragging mouth-breather that suggested or approved both of these to happen at the same time. Probably MBA in HR.
Re: Cake, and eat it too.
"And, also, what should happen to the knuckle-dragging mouth-breather that suggested or approved both of these to happen at the same time. Probably MBA in HR."
I think you'll find that all the decisions sat very closely with the Issa brothers and TDR Capital, not with functional heads (who incidentally claims to have an MSc In Human Resource Management, not an MBA). All TDR want is to turn the business round and get out with a fat payoff, so they don't need to consider the long term, but they do need a functioning business to sell or re-list.
The IT chaos won't have been helped by the Issa brothers appearing to have fallen out big time (lots of reports, all denied) and TDR have now bought the stake of one of the brothers. The other brother is now a minority shareholder in a business 66% owned by TDR. Walmart retain a 10% stake in the business, for reasons known only to themselves.
So what TDR want, they get.
Query
How confident is the author that the Asda staff are being offered a choice of TUPE or redundancy? TUPE always used to mean that the job is not disappearing, just a switch of employer so there is no requirement to offer redundancy.
Re: Query
my experience is it's common in outsourcing/contract takeover for the tupe'd to be riffed by the new supplier
helps maintain continuity until the transition is complete, and the new supplier is on the hook for the cost
Re: Query
In this case Asda are on the hook, there's no way off it. They tried to do the IT themselves, failed and ran out of time, they have to cross their fingers and hope TCS deliver what Asda think they agreed (!) and pay whatever TCS choose to bill. If they gets into a contractual dispute then Asda are sunk, TCS will not be harmed one bit.
Of course, if Asda didn't want to be in this position, maybe they should have hired the right CIO, listened to them, and not undertaken distractions like multiple acquisition totalling £2.5bn for hundreds of filling stations and convenience stores from Coop and EG Group.
Re: Query
The whole point of the transaction was to bring EG Group and Asda together in some way. It was the owners of EG Group that took over Asda, and obviously they aren't going to want to have 3rd party supermarket chains running the petrol station shops long-term.
Morrisons and MFG will do something similar at some point. They aren't going to want Londis (owned by Tesco) running their petrol station shops long-term when they can have Morrisons Local or McColls doing it. Likewise, given that Morrisons owns about 1/3 of Greenergy, they are going to want to use them to supply the fuel rather than the likes of BP and Shell.
Re: Query
I was TUPE'd twice in the very early 2000's and while core benefits were respected our conditions diverged sharply from those who remained directly employed, ie no pay rises until our salaries matched those of our new colleagues. I did not hang about at the first firm but the new job went the same way with the same bloody outsourcer!
At least they didn't go for the same scummy lot that did the POs Horizon system.
They are all the same. Only the consequences and fallout differs.
Run away!
Take redundo now if you can, boys and girls. TCS will throw you under the bus - they've got form for it.