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Insurance company Old Mutual and T-Systems South Africa have signed an IT agreement valued at EUR 250 million.

The outsourcing deal is one of the largest in the South African insurance industry. It replaces the existing contract originally signed in 2008. Under the new deal, T-Systems will provide mainframe, computing services, storage and a service help desk for Old Mutual and Mutual & Federal until 2019. The partners put a strong focus on innovation to improve IT processes and reduce costs.

"Our partnership with T-Systems will accelerate our ability to deliver on our commitment to improving customer service, and increasing IT operational efficiency," said Richard Boynett, CIO for Old Mutual's Long-Term Savings IT. The deal has the same standard service and delivery elements as with any other outsourcing agreement, said Mardia van der Walt-Korsten, Managing Director of T-Systems South Africa. What makes the contract market leading is the cooperative manner in which challenges and opportunities will be faced by T-Systems and Old Mutual.

Old Mutual looks back on a long history. It was established as the Mutual Life Assurance Society of the Cape of Good Hope in 1845 by 166 members of the Dutch Cape Colony. Today, it is a listed company providing asset management, banking and general insurance to more than 15 million customers all over the world. Old Mutual is based in London and operates in 33 countries. In 2010, Old Mutual reported an operating profit (before taxes) of GBP 1.5 billion.