IBM (NYSE: IBM) today announced that Mitsui Sumitomo Insurance in Japan has extended its strategic outsourcing contract for an additional five years.
As part of the agreement, IBM Japan will manage the operation and maintenance of the company's IBM mainframe systems.
Mitsui Sumitomo Insurance has a business plan to become a world leading insurance and financial group by 2010 and advocates providing high-quality, competitive business services. To support this strategy, IBM Japan will help improve the quality of the information technology (IT) system, which is the foundation of the insurance group's operation.
IBM Japan was selected for the extended agreement based on its proven ability to improve IT management capabilities, quality of maintenance and reduce IT cost. Through the new contract, the outsourcing scope will be extended to include the operation and management of data processing. IBM will also enhance process automation and system efficiency to realize higher quality of operation and management services and improve service quality by using IBM's latest technologies.
The new agreement was signed in March 2009 and follows the original ten-year contract signed in August 1999.