Intermediaries to benefit from Mutual & Federal IT investment

Intermediaries will be important beneficiaries of expanded and improved IT capabilities at Mutual & Federal.

The assurance comes from Managing Director Keith Kennedy (pictured right) following the announcement by Old Mutual Group of a R1,8 billion contract aimed at improving service delivery and the overall efficiency of both Old Mutual South Africa and Mutual & Federal.

Said Kennedy: “Mutual & Federal is embarking on a strategy of long-term growth. This will require substantial IT resources if we are to achieve the desired level of high quality service in a sustainable and cost-efficient way.

“Marketing needs – including the needs of the insurance professional – were a key element in the specification and scope of the new systems and the associated outsourcing contract.

“The new contract runs for five years, but roll out begins in March 2008 and we believe benefits will soon be evident. The net effect will be to support the quality profile of Mutual & Federal, resulting in potential new business gains and improved business retention over time. These are key advantages not only for us but our marketing partner - the intermediary.”

The contract for a state-of-the-art Information and Communication Technology (ICT) solution has been awarded to T-Systems, the business customer division of Deutsche Telekom and a specialist in integrated ICT solutions from a single source.

The deal covers the supply and maintenance of ICT infrastructure and the delivery of synergies across the businesses of Mutual & Federal and Old Mutual South Africa. The contract entails data centre management, disaster recovery, service desk and management toolsets and provision of hardware and software.

Key benefits include:

• improved service through a proven service management approach
• significant capital investment by T-Systems in the quest for lower unit costs
• flexibility to cater for future business needs
• formalised innovation and continuous improvement
• strong protection and risk mitigation elements.

Kennedy noted: “Though systems investment is significant, Mutual & Federal will continue to emphasise personal service from proven professionals. Systems give us the support platform, but quality assistance from people you respect and trust will stay at the heart of our service proposition.

“This remains a people business and the people at the heart of the marketing effort are the intermediaries. That’s not going to change.”