USD300m outsource deal in SA
Old Mutual and T-Systems in South Africa have agreed on an IT infrastructure management deal valued at R2.58 billion, extending the existing relationship between the two partners until 2019.
In a joint statement, they said the new agreement represented an industry leading outsourcing approach, and was one of the largest IT infrastructure deals of this nature in the insurance industry in South Africa.
Referred to as Equinox, the deal puts a strong focus on innovation. It will help set up processes to reduce Old Mutual’s operating costs over the seven year period and provide the organisation with a platform for innovation that supports its Long-Term Savings (LTS) strategy. The mutually beneficial partnership will ensure Old Mutual’s IT infrastructure services are delivered in a collaborative and cost-effective way.
The new deal replaces T-Systems’ existing contract with Old Mutual, originally signed in 2008.
The scope of the new agreement includes the delivery of IT support services to Old Mutual and Mutual & Federal. This will include a global service help desk, mainframe, storage and end-user computing services. Future support into other emerging markets such as Africa, Colombia and Mexico will be considered in the future in order to align with Old Mutual’s business strategy.