Tesco IMS Selects Zensar for Cloud Transformation

Zensar Technologies has secured a contract with Tesco Insurance and Money Services (Tesco IMS) to implement a comprehensive modernisation programme, the companies announced yesterday.

The technology solutions provider, headquartered in Pune, India, will develop a cloud-first infrastructure for Tesco IMS while facilitating its separation from Tesco Bank, which was recently acquired by Barclays UK.

Zensar, part of the US$4.8bn RPG Group, specialises in digital transformation services including experience design, engineering and technical engagement. 

The firm employs approximately 10,000 staff across 30 global locations.

The project encompasses the modernisation of end-to-end infrastructure, network services, application hosting and contact centre operations for Tesco IMS, the UK's second-largest provider of travel money services.

Technology Carve-Out

A significant aspect of the engagement involves the technology separation of Tesco IMS from Tesco Bank following the banking division's sale to Barclays UK. 

This process, known in the industry as a carve-out, requires the creation of independent technology systems while maintaining operational continuity.

“Tesco Insurance and Money Services have a vision for their business, and we are delighted to have won their trust in delivering this critical transformation,” says Manish Tandon, CEO and Managing Director at Zensar Technologies. 

“As Tesco IMS undertake this complex journey, our target operating model underpinned by solutions relevant to Tesco IMS context will deliver a responsive, market-ready and customer-centric service.”

The separation will involve implementing regulatory controls specific to insurance operations, which differ from those governing banking entities. 

Insurance companies must adhere to solvency requirements, conduct rules and claims handling processes distinct from banking regulations.

Robert Jamieson, Chief Information Officer at Tesco Insurance and Money Services, explains the strategic importance of the partnership: “We're excited to be partnering with Zensar to modernise our end-to-end infrastructure, network and application hosting services and contact centre.”

Cloud-First Strategy

The transformation programme centres on establishing what the industry terms a "cloud-first" approach—a strategy prioritising cloud computing over traditional on-premises infrastructure when implementing new systems or upgrading existing ones.

This approach typically reduces capital expenditure on hardware while enabling greater scalability and flexibility. For financial services firms, cloud migration also facilitates more rapid deployment of new products and services.

Tesco IMS serves more than two million customers across home, travel, pet and car insurance products from operations centres in Edinburgh, Glasgow and Newcastle. 

Beyond insurance, Tesco IMS maintains the third-largest ATM network in the UK with more than 3,400 cash machines across Tesco and One Stop stores. 

Its gift card business represents 35% of the UK market, with annual sales exceeding 10 million Tesco gift cards and 5 million third-party gift cards.

The transformation project aims to enhance operational efficiency across all these business lines while maintaining security and service continuity.

“This technology will help build out our new platforms and tooling across our IT infrastructure whilst refreshing Cloud and Security landscapes operated by Zensar,” Robert adds. 

“This will lead to a highly efficient operating model operated with a focus on reliability, security and providing a class leading service to better support our customers and colleagues with a real time view of our technology and business systems to support our ambitious growth plans.”

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