informa
/
1 MIN READ
News

Royal & SunAlliance Outsources Tech To IBM For 10 Years

IBM will operate and support Royal & SunAlliance's entire IT infrastructure, including its mainframe and midrange servers, desktop PCs, and e-business systems.
IBM said Thursday that it has won a 10-year deal to provide a range of tech services to U.K.-based insurance company Royal & SunAlliance.

IBM didn't disclose specific financial terms, but characterized the agreement as a "multimillion dollar" deal.

Under the contract's terms, IBM will operate and support Royal & SunAlliance's entire IT infrastructure, including its mainframe and midrange servers, desktop PCs, and e-business systems.

The agreement "is a significant investment in our IT software and hardware across all areas of our U.K. business," said Jim Williams, IS director at Royal & SunAlliance, in a statement.

IBM also will help Royal & SunAlliance redesign its IT architecture and manage services provided to the insurer by about 40 third-party technology vendors.

IBM's Global Services unit could use more such deals. In the first quarter of 2007, IBM signed services contracts totaling $11.1 billion, down 2% from the same period a year ago -- although total Global Services revenue was up 8% overall.

Separately, Royal & SunAlliance on Thursday announced a five-year deal under which it will outsource operation of its communications networks to Cable & Wireless. The contract covers mobility services, WAN and LAN maintenance, and managed security services.

The deal extends an existing agreement between Cable & Wireless and Royal & SunAlliance that was struck in 2002.

Editor's Choice
Brian T. Horowitz, Contributing Reporter
Samuel Greengard, Contributing Reporter
Nathan Eddy, Freelance Writer
Brandon Taylor, Digital Editorial Program Manager
Jessica Davis, Senior Editor
Cynthia Harvey, Freelance Journalist, InformationWeek
Sara Peters, Editor-in-Chief, InformationWeek / Network Computing