Zurich Financial Services has signed a global IT applications outsourcing agreement with Computer Sciences Corporation (CSC).
The seven-year deal is worth approximately $1.3bn if all options are exercised, said Zurich.
Under the deal, CSC will provide Zurich with a range of applications development and maintenance services in the US, the UK, Switzerland and Germany.
Approximately 1,600 Zurich employees will transfer to CSC following the deal. Employees based in the UK, the US and Switzerland are expected to transfer during the fourth quarter of 2004, while Zurich's German employees will transfer during the second half of 2005.
All employee transfers are subject to the prior completion of required consultation with employee representatives, it said.
“This relationship is an important enabler for Zurich's further evolution from a globally diversified business to a globally leveraged business,” said Zurich
chief information technology officer Michael Paravicini.
“This agreement will introduce new efficiencies in applications service delivery and help us direct the right resources to the right business priorities when and where we need them.”
Zurich said the CSC deal was an important part of its global IT strategy announced on 9 May 2003, with the aim of consolidating IT services throughout the group.
