Financial services group Old Mutual and T-Systems SA have signed an IT infrastructure management deal worth R2.58 billion.

The deal, announced this morning in Sandton, is one of the largest IT infrastructure deals awarded by an insurance company in SA.

It replaces the Rosa contract between the two parties, which was signed in 2008, for R1.8 billon.

“The new agreement represents an industry leading outsourcing approach, and is one of the largest IT infrastructure deals of this nature in the insurance industry in South Africa,” the companies said in a joint statement.

Referred to as Equinox, the deal, which runs till 2019, puts a strong focus on innovation. It will help set up processes to reduce Old Mutual’s operating costs and provide the organisation with a platform for innovation that supports its Long-Term Savings (LTS) strategy.

The contract will increase Old Mutual's IT operational efficiency, says Richard Boynett, CIO of Old Mutual's long-term savings division.

“This partnership will accelerate Old Mutual’s ability to deliver on its commitment to improving customer service, and increasing IT operational efficiency,” Boynett said.

Old Mutual, which is headquartered in London, operates in 33 countries and has more than 15 million customers across the globe. It has a majority shareholding in Nedbank, and offers short-term insurance through Mutual & Federal, and long-term savings and investments through its Old Mutual brand.

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