Old Mutual Group and T-Systems in South Africa sign new R2.58bn IT infrastructure management deal

Old Mutual and T-Systems in South Africa have agreed an IT infrastructure management deal valued at R2.58bn (approx. Euro 250 million), extending the existing relationship between the two partners to 2019. The new agreement represents an industry leading outsourcing approach, and is one of the largest IT infrastructure deal of this nature in the insurance industry in South Africa.

Referred to as Equinox, the deal puts a strong focus on innovation. It will help set up processes to reduce Old Mutual’s operating costs over the seven year period and provide the organisation with a platform for innovation that supports its Long-Term Savings (LTS) strategy. The mutually beneficial partnership will ensure Old Mutual’s IT infrastructure services are delivered in a collaborative and cost-effective way.

The new deal replaces T-Systems’ existing ROSA contract with Old Mutual, originally signed in 2008. The scope of the new agreement includes the delivery of IT support services to Old Mutual and Mutual & Federal. This will include a global service help desk, mainframe, storage and end-user computing services. Future support into other emerging markets such as Africa, Colombia and Mexico will be considered in the future in order to align with Old Mutual’s business strategy.

This deal consolidates T-Systems’ position as Old Mutual’s trusted IT Infrastructure partner in the emerging markets. Richard Boynett, Chief Information Officer for Old Mutual Long-Term Savings IT, says: "This partnership will accelerate Old Mutual’s ability to deliver on its commitment to improving customer service, and increasing IT operational efficiency."

Mardia van der Walt-Korsten, Managing Director of T-Systems in South Africa agreed "Equinox has standard service and delivery elements, as with any other outsourcing agreement - what makes the contract market leading is the cooperative manner in which challenges and opportunities will be faced by the parties. This shared approach cements the partnership between T-Systems and Old Mutual in the long term."

About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with more than 128 million mobile customers, about 35 million fixed-network lines and approximately 17 million broadband lines (as of September 30, 2011). The Group provides products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in over 50 countries and has around 238,000 employees worldwide. The Group generated revenues of EUR 62.4 billion in the 2010 financial year – more than half of it outside Germany (as of December 31, 2010).

About T-Systems Drawing on a global infrastructure of data centers and networks, T-Systems operates information and communication technology (ICT) systems for multinational corporations and public sector institutions. T-Systems provides integrated solutions for the networked future of business and society. The company's some 47,600 employees combine industry expertise and ICT innovations to add significant value to customers’ core business all over the world. T-Systems generated revenue of around EUR 9.1 billion in the 2010 financial year.

About Old Mutual Old Mutual is an international long-term savings, protection and investment Group. Originating in South Africa in 1845, the Group provides life assurance, asset management, banking and general insurance to more than 15 million customers in Europe, the Americas, Africa and Asia. Old Mutual is listed on the London Stock Exchange and the Johannesburg Stock Exchange, among others. In the year ended 31 December 2010, the Group reported adjusted operating profit before tax of £1.5 billion (on an IFRS basis) and had £309 billion of funds under management from core operations, and shareholders' equity of £9.0 billion. For further information on Old Mutual plc, please visit the corporate website at www.oldmutual.com