Royal & SunAlliance unveils multimillion IT deals

Insurance giant Royal & SunAlliance has announced two new IT deals with its infrastructure and network suppliers.

IBM will now run the infrastructure - including mainframes, mid-range servers, desktops and ebusiness services - and integrate all 40 or so third-party suppliers' offerings at the insurance company, although both IBM and R&SA will share the responsibility for architectural design.

The 10-year deal is worth between $400m and $500m and is an expansion of a hook-up between the pair signed in 2001.

The deal represents a "significant investment" in IT software and hardware across all areas of the insurer's UK business, said Jim Williams, IS director at R&SA.

Cable & Wireless has also clinched a deal with the insurer: a five year, multimillion contract that will see Royal & SunAlliance outsource its network to the telco which will also be charged with overhauling the insurer's IP infrastructure.

C&W will take over all of R&SA's comms - including voice, wide area networking, mobility and conferencing.

Other recent contracts won by Cable & Wireless include a five-year deal with Woolworths, signed in November; an £18m agreement with Surrey County Council; and a contract to supply Littlewoods Group with services, including the provision of an IP contact centre, IP telephony, wide and local area IP networking.