Co-operative Financial Services (CFS) has extended its 12-year outsourcing contract with Xansa in a deal expected to be worth up to £100m over five years.
CFS is the industrial and provident society that includes the Co-operative Insurance Society (CIS) and the Co-operative Bank. It is part of the Co-operative Group, which includes food, travel and other businesses.
The new deal will widen the scope of the existing contract to include to include CFS’s Insurance business. It will also see application development and support outsourced to sites in the UK and India. The new deal is driven by CFS’s need to respond quickly to increased regulatory pressures, while keeping costs down.
CFS chief executive David Anderson said Xansa’s approach suited the firm well, offering an integrated delivery capability to support its business change agenda. The contract was aimed at creating “a best in class, unified application development and maintenance service under CFS governance”, he added.
The original seven-year contract between CFS and Xansa was signed in 1994 with a value of £22m. This was extended to a £38m six-year contract in 1998 and again in 2006. The 1994 deal was Xansa’s first ever financial services outsourcing contract and only its second outsourcing deal.
Last month, the Co-operative Group went live with an 7 terabyte Oracle data warehouse, bringing together information on its four million members and their use of the group’s services, in a move aimed at better targeting tailored marketing campaigns.