QBE has confirmed it is outsourcing its IT function in a move it claims will help improve service levels for brokers.
The insurer has concluded the strategic review of its IT and operational requirements that was announced in July this year, following QBE’s reorganisation of its underwriting businesses in 2008.
In a statement, QBE said: “A key output will be the accelerated delivery of a business transformation programme to improve service levels to brokers, customers and underwriters, and enhance operational efficiency.”
In July, QBE confirmed that its preferred option was to enter into a number of strategic IT partnerships with third party providers. As a result of a subsequent tender process, two principal partners have been selected and new service arrangements from both providers are due to start in February 2010.
A primary partner has been awarded a contract to support QBE’s IT application development and maintenance, together with running an ongoing board-directed change programme while a second principal partner will manage QBE’s IT infrastructure services and user support.
The names of these partners are to be subsequently announced. Steven Burns, CEO QBE European operations, said: “It is critical that we look to shape our business to maximise the organic and acquisition growth opportunities that a future rising market will present. Our strategic review will result in the accelerated decommissioning of our legacy IT estate and should ensure that the business support to our underwriters is truly market-leading. “As previously announced, our decision to enter outsourcing partnerships, and the proposed new organisation structure have had an inevitable impact on the people within QBE’s own IT team, and regrettably we have now agreed a number of individual redundancies within this function, affecting approximately 125 staff in this area.”
Source: http://www.broking.co.uk/insurance-age/news/1558922/qbe-outsource-it-bid-improve-service
