Beyond Cost-Cutting

Guardian Life Insurance Co. of America last week signed a $35 million contract with Indian services firm Patni Computer Systems to provide offshore support for application development and software maintenance. The contract runs through 2010.

Using offshore services companies has let Guardian slash app-development and support costs by as much as 60% and save about $12 million annually, says VP of IT Shelley McIntyre. Guardian also works with Indian firms Covansys and NIIT Technologies. But cost wasn't the only reason Guardian tapped Patni, which had to meet quality-of-service criteria and provide a reliable business-continuity plan. Patni has Carnegie Mellon's Capability Maturity Model Level 5 certification, a quality-assurance standard. It also maintains redundant facilities in India and operates 12 U.S. development centers.

Patni wants to expand its U.S. presence. Says chairman and CEO Naren Patni, "We want to get to the point where we have offices within 400 miles of every customer."