CSC inks Pan-American Life Insurance IT outsourcing deal
20 January 2006 | 1967 views | 0
Computer Sciences Corporation (NYSE:CSC) today announced that Pan-American Life Insurance has signed an information technology (IT) outsourcing agreement with CSC to support its U.S. and Latin American operations.
CSC estimates the value of the 7.5-year contract to be approximately $27 million.
Under the agreement, CSC facilities in San Diego, Calif., and Austin, Texas, will assume responsibility for Pan-American's data center operations, including mainframe applications and midrange and server systems. CSC also will manage Pan-American's network operations and desktops in the United States, as well as in Colombia, Ecuador, El Salvador, Guatemala, Honduras, Panama and Puerto Rico. In addition, CSC will provide Pan-American with enterprise help-desk services in both English and Spanish.
By using CSC's global, integrated IT infrastructure, Pan-American will have a consistent environment and the ability to standardize processes companywide. Through outsourcing, Pan-American also gains access to the latest technology and industry best practices, as well as a more predictable and scalable structure for its IT costs.
"CSC went the extra mile to help us recover from the damage to our home office in New Orleans after Hurricane Katrina," said Pat McGunagle, Pan-American executive vice president. "We trust CSC's software, but their responsiveness and knowledge of the insurance industry made it clear we could entrust them with our total infrastructure as well."
A user of CSC's life insurance administration systems for more than 15 years, Pan-American turned to CSC for short-term disaster recovery in September after damage from Katrina destroyed employees' homes and forced Pan-American out of its New Orleans headquarters. CSC established a back-up data center at its facility in Irving, Texas, for the carrier and provided workspace for Pan-American employees who were forced to evacuate.
"After Katrina, we learned a great deal about Pan-American by helping the company rebuild its operations almost from scratch," said Michael W. Risley, president of the Life and Annuity Division of CSC's Financial Services Group. "Our experience in IT infrastructure hosting enables us to achieve key results in line with Pan-American's business goals, while simultaneously helping the company ensure preparation for future disasters."