Listed financial services group Old Mutual and T-Systems SA have signed an infrastructure management deal worth R2.58 billion.
The deal, announced this morning in Sandton, is one of the largest IT infrastructure deals awarded by an insurance company in SA. It replaces the Rosa contract between the two parties, which was signed in 2008, for R1.8 billon.
Old Mutual and T-Systems' latest outsourcing agreement, Equinox, will be in place until 2019. The contract aims to trim Old Mutual's operating costs over the seven-year period and provide it “with a platform for innovation that supports its long-term savings strategy,” the companies say in a joint statement.
Old Mutual, which is headquartered in London, operates in 33 countries and has more than 15 million customers across the globe. It has a majority shareholding in Nedbank, and offers short-term insurance through Mutual & Federal, and long-term savings and investments through its Old Mutual brand.
Equinox covers delivery of IT support services to Old Mutual and Mutual & Federal. It includes a global service help-desk, mainframe, storage and end-user computing services.
T-Systems SA MD Mardia van der Walt-Korsten says: “Equinox has standard service and delivery elements, as with any other outsourcing agreement.” However, what differentiates it is the “co-operative manner in which challenges and opportunities will be faced together by both parties”.
In the future, the deal may include support into other emerging markets such as Africa, Colombia and Mexico to fit in with Old Mutual's business strategy.
Richard Boynett, CIO of Old Mutual's long-term savings division, says the partnership will “accelerate Old Mutual's ability to deliver on its commitment to improving customer service, and increasing IT operational efficiency”.
Last July, Old Mutual awarded a five-year, R2.5 billion telecommunications outsourcing contract to Dimension Data, supported by Telkom and Nashua Communications. It was then the largest IT deal it had inked since it came into being in 1845.
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