Old Mutual SA (OMSA), the country`s largest financial services company, is to create its own outsourcing service from its various administration and IT functions that are split across its business units.
"We`re elevating administration to a core competency - placing Old Mutual at the forefront of the industry when it comes to delivering excellent customer service and efficient, cost-effective administration," says OMSA MD Roddy Sparks.
The establishment of the new entity forms part of OMSA`s role within the broader group to provide cost-effective administration locally for its global operations. It may also provide similar services to other insurance companies, locally and internationally.
"It is an outsourcing division, but in a sense we will be our own guinea pigs," says an OMSA spokesman.
Each business unit is currently responsible for its own IT strategy and while there is a central IT procurement department, it is almost impossible for the group to say how much is spent on an annual basis on various hardware and software systems. However, OMSA estimates that IT and telecommunications amounts to 38% of its total procurement budget, and that a desktop and telephony support service from an international outsourcing group is worth about R2 billion over a seven-year period.
Old Mutual deputy MD Peter de Beyer will head up a new division bringing together the administration elements of many of OMSA`s businesses.
De Beyer relinquishes part of his current responsibilities to Paul Hanratty, currently executive GM of the Individual Life business, who will be promoted to deputy MD with responsibility for retail product and distribution.
Key role players in the service, technology and administration areas from across Old Mutual will now report to De Beyer, including Jerry van Niekerk (executive GM, Old Mutual Client Services), Vic Lumby (CIO), Stan Leslie (Project Synergy), Theo Nkone (Personal Finance Service and Operations), Dion Williamson (International Outsource Development) and Edna Charalambides (Old Mutual Unit Trust Administration).
"It`s part of our strategy, and part of good business sense, to `import` third-party administration work into SA. We are optimally positioned both geographically and economically to provide effective administrative solutions - this new structure helps us gear up our capability in this regard," says Sparks.
The changes will be effective from 1 January.
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