Old Mutual South Africa takes big plunge into outsourcing

In a move aimed at improving
efficiency and cutting costs, UK insurer Old Mutual’s largest unit,
Old Mutual South Africa (OMSA), has opted to go the outsourcing
route.

Under a five-year contract
worth ZAR2.49bn ($360m), Japanese telecommunications group Nippon
Telegraph and Telephone’s information technology subsidiary
Dimension Data and South African telecommunications company Telkom
will operate all data and voice services for OMSA, its banking
subsidiary Nedbank and general insurance subsidiary Mutual &
Federal.

OMSA is South Africa’s
largest insurer and in 2010 reported total new business of
ZAR17.53bn. Of this total savings products represented ZAR14.06bn,
annuity products ZAR3.46bn and protection products a token
ZAR6m.

Nedbank is one of South
Africa’s four largest banks while Mutual & Federal is the
country’s second-largest general insurer.

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