Direct Line Group has awarded Capgemini UK plc, part of the global Capgemini Group, a five year contract to design, deliver and run a new IT infrastructure to support its business.
This involves the migration of Direct Line Group's corporate and business applications from RBS Group to an independent platform, representing a significant phase of its operational separation. It is estimated that the agreement will provide for the migration away from RBS Group IT infrastructure at a cost of approximately £100 million. Work on the migration will commence in January 2013 and is expected to complete by the end of 2014.
The move will provide Direct Line Group with further control over its service delivery to customers and give it greater ability to prioritise and implement business change.
Direct Line Group announced its business transformation plan in 2010 targeting pricing, claims, distribution and operational efficiency. The IT migration will complement Direct Line Group's business transformation.
Paul Geddes, CEO of Direct Line Group, said: "Over the last few years we have been transforming the business and we are beginning to see the results. The planned work on our IT infrastructure is a key piece in this jigsaw, as Direct Line Group finalises its separation from RBS Group."
Patrick Nicolet, Global CEO of Capgemini Infrastructure Services and member of the Group Executive Committee, said: "Many companies are increasingly striving to be more agile and flexible and it is clear that Direct Line Group, with its far-sighted transformation plan, is no exception. They do not want IT to inhibit their ambitions, and that is why we aim to provide them with true alignment between business demands and IT resource provision."
Angela Morrison, Chief Information Officer, Direct Line Group said: "This project is intended to enable us to focus on supporting our customers in the best way possible."
About Direct Line Insurance Group plc
Direct Line Group is a retail general insurer with leading market positions in the United Kingdom, a strong presence in the direct motor channel in Italy and Germany and a focused position in UK SME commercial insurance. The Group operates under highly recognised brands such as Direct Line and Churchill and is comprised of five primary segments: motor, home, rescue and other personal lines, commercial and international.
In the UK, Direct Line Group utilises a multi-brand, multi-product and multi-distribution channel business model that covers most major customer segments for personal lines general insurance. The Group also has a focused presence in the commercial market. The Group occupies leading market positions in terms of in-force policies and has the most highly recognised brands in the UK for personal motor and home insurance including Direct Line and Churchill. Other primary Direct Line Group brands include
Privilege and Green Flag; NIG, a provider of insurance solutions to UK SMEs and Direct Line For Business ("DL4B'), the Group's direct commercial brand. The Group is also a major provider of insurance through a number of strategic partnerships. In Italy and Germany the Group operates under the Direct Line brand.