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Royal & SunAlliance Signs GBP 92m IT Outsourcing Deal With T-Systems in the UK

T-Systems, the business customer unit of Deutsche Telekom, has announced a deal with Royal & SunAlliance, one of the UK's largest insurers, to outsource its IT and printing operations.

The deal has a value of GBP 92m and an initial term of ten years.

As part of the R&SA deal, T-Systems will take over two print facilities in Birkenhead (Liverpool) and Easton (Bristol) and 63 employees will be transferred to the service provider.

"This deal will allow T-Systems Ltd to set up, on behalf of R&SA, a print transformation utility and enable the company to provide similar services to other UK businesses. There are two immediate benefits for us: Our outsourced staff will be joining a highly progressive and fast growing business and R&SA will be embracing best-in-class technology and printing processes," explained Shirley Campbell, UK HR Director at R&SA.

In outsourcing its printing operation to T-Systems, R&SA can concentrate on its core competency and allow T-Systems to focus on technology improvements to the IT and printing infrastructure to continue to improve quality, scalability and deliver savings.

R&SA is the second major IT outsourcing contract sealed in the UK this year by T-Systems who signed a ten-year IT outsourcing contract in February with UK energy giant, Centrica plc.

"The fact that we have repeated success in the most competitive IT market in Europe is proof that we are on the right track with our international growth strategy," said T-Systems Limited CEO, Jan van der Merwe.

T-Systems international goal is to assume ICT leadership in major western European markets by 2010.

The Deutsche Telekom subsidiary is currently the largest IT services provider in Germany and a European leader.

In SAP outsourcing, for example, T-Systems it is the largest provider in Europe with over one million users.

"This R&SA outsourcing deal is another growth milestone for T-Systems in the UK. We will be able to provide significant savings to R&SA as a result of this deal and our IT expertise, coupled with planned upgrades of the existing facilities, means a winning solution for R&SA, the transferred staff in Bristol and Liverpool, and for us as we continue on our path to being a top ten Information and Communications Technology (ICT) services company in the UK," said Jan van der Merwe.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.