Woolworths expects to make a£250,000 saving after signing Cable & Wireless (C&W) to manage its telecoms needs.
The contract, which runs until 2007, is worth£1.4 million. Under the deal, Woolworths will use the Cable & Wireless Carrier Pre-Select service, which automatically redirects a call from BT's national network whenever it is cheaper to do so.
The service also includes management of the retailer's broadband data network, connecting its 825 stores and three corporate sites.
The deal is a result of Woolworths' demerger from the Kingfisher Group in 2001 and is a part of a subsequent business review.
Woolworths head of IT infrastructure Tony Godwin said: 'Working with Cable & Wireless has provided an improved service and has helped to drive costs down. Both are vitally important for us.'
Woolworths is expected to make a number of other technology investments in the next 12 months. The retailer intends to transfer its merchandise management software from JDA to SAP, and is also reviewing its space management system, which at the moment is run on AC Nielsen's Spaceman enterprise analysis software.
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