T-Systems bags R50m insurance deal

Johannesburg, 18 Jun 2008

Midrand-based ICT outsourcer T-Systems has concluded a R50 million deal with consulting and actuarial firm Negotiated Benefits Consultants (NBC), to manage the communications between all of NBC`s locations in SA, for the next five years.

T-Systems GM for business development and strategy Gert Schoonbee says the company replaced incumbent Dimension Data.

The company will provide NBC with end-to-end infrastructure and telecoms solutions, based on a multi-protocol label switching network, which will connect the five national NBC offices in Sandton, Durban, Cape Town, Port Elizabeth and Polokwane.

The contract also includes desktop support, hosting services, and server management services, the company says in a statement.

Schoonbee explains that the contract is not only of significant value, but also entrenches the relationship between T-Systems and its BEE partner - a consortium consisting of African Renaissance Holdings and Awari Investment Holdings. NBC executive chairman and MD Max Maisela is also stakeholder in the BEE consortium and sits on the T-System board.

"This shows that there is a very good relationship between us and the deal allows us to leverage economies of scale and bring in our own people."

T-Systems CEO Mardia van der Walt-Korsten describes the deal as highly significant, as it complements the "strong focus and leading position that the company holds in the insurance industry".

This is the second big transaction for T-Systems this year, also in the financial services sector. The outsourcing group, which is a division of Deutsche Telekom, recently won a five-year, R1.8 billion contract for the supply and maintenance of a significant portion of the ICT infrastructure for financial services company Old Mutual SA and short-term insurer Mutual and Federal.

Van der Walt-Korsten says these deals are indicative of a strong trend starting to develop in the financial services sector to outsource ICT functions.