Lloyd's, the world's leading insurance market providing specialist insurance services to businesses in over 200 countries and territories, has re-signed a managed services contract worth £10.5 million with Steria, a leading European IT services provider.
Steria will continue to provide applications management, data centre hosting and infrastructure management to the market – which has capacity to underwrite £13.7 billion of business - until 2008. This extends the contract that has been in place since 1998 for a further four years.
Under the existing contract with Lloyd's, Steria runs many of the systems that support core business processing, achieving more than 20 per cent reduction in running costs over the past five years. Building on these savings, Steria will enhance the services it provides; currently this involves data centre and infrastructure management, as well as systems development, applications management and administration. Going forward Steria will combine the provision of these services and manage the migration of Lloyds' legacy systems off the current mainframe environment to a new lower cost platform. This is expected to deliver between a 25 per cent and 35 per cent saving for Lloyd’s over the next four years.
Another benefit for Lloyd's is in the implementation of Steria's Governance model, which has been developed for managed services contracts to continuously facilitate innovation. Taking into account external factors such as business, technology, regulatory and legislative, in addition to internal operational factors, the Governance model provides a delivery framework within which today's needs are met but can also be "transformed" forward to meet evolving needs. Given the constant pressures the insurance market faces, Lloyd's required its managed services provider to demonstrate its ability to manage such change effectively.
Chris Rawson chief information officer at Lloyd's said: "We've worked with Steria for over five years and view them as a partner with whom we have an excellent working relationship. As we've needed to evolve and change with the times, so Steria has continued to draw on its experience and skills to provide a managed IT service that meets our needs. With Steria's commitment, flexibility and willingness to support our changes, I am confident we will see the same level of success with a service that is responsive to the changing business environment that Lloyd’s faces."
Lynda Chambers, Director of Commercial Sector, Steria UK, said, "We are delighted to further extend our relationship with Lloyd's. We have proven our service excellence by ensuring this critical 24/7 marketplace functions smoothly. Our applications team has played a significant role in the system changes needed to facilitate reform within the market and I look forward to exceeding beyond this in the future. By underpinning our service with the Steria Governance model, I am confident that we can deliver the level of flexibility and responsiveness Lloyd’s requires."