Wesfarmers Health taps TCS for IT outsourcing strategy
PERTH, AUSTRALIA — Wesfarmers Health, the parent company of Priceline and InstantScript, is moving forward with plans to outsource several back-office roles, including IT, to Tata Consultancy Services (TCS) in India.
This strategic decision involves bringing TCS consultants to its Melbourne headquarters to “shadow” existing staff, which has caused concern among employees.
Consultants arrive amid back office role transformations
The arrival of TCS consultants marks a significant shift in how Wesfarmers Health manages its back-office operations. Employees in IT, human resources, and finance are among those affected by this transition.
The company aims to enhance operational efficiency and business capabilities through this partnership.
Employee reactions to outsourcing announcement
Many employees were reportedly surprised by the outsourcing plans. An anonymous source told iTnews that some staff described the shadowing process as akin to “digging your own grave,” highlighting the anxiety and uncertainty surrounding their job security.
Despite these concerns, a Wesfarmers Health spokesperson said that support will be provided to those impacted, including potential redeployment opportunities.
“TCS’s appointment follows a thorough selection process. As a result of these changes, a proportion of people will be impacted in non-customer-facing roles. We will provide support to affected team members, including redeployment opportunities.”
Strategic shift post-API acquisition
Wesfarmers Health was established after acquiring Australian Pharmaceutical Industries (API) in March 2022.
API was a prominent player in Australia’s health and beauty market, known for its pharmaceutical distribution and management of Priceline stores, the Sister Club loyalty program, and Clear Skincare clinics.
Leadership drives IT modernization efforts
The initiative is led by Troy Smith, who was appointed Chief Information Officer (CIO) after the API acquisition. Smith’s previous experience as CIO at Myer involved working with TCS to modernize merchandise systems using Oracle technology. At Wesfarmers Health, Smith plans to update the company’s IT infrastructure by replacing outdated systems.
Wesfarmers Health’s collaboration with TCS highlights its commitment to technological advancement and operational efficiency. However, the transition poses challenges for employees as they adapt to new processes and potential role changes.
As the company continues with its outsourcing strategy, the impact on its workforce and overall business operations remains a key area of focus.
