SA`s leading short-term insurance company Santam Ltd has awarded a three-year IT networking services contract, valued at in excess of R50 million, to global technology services company Dimension Data.
The contract calls for Dimension Data to manage Santam`s IT networking structure and costs by leveraging economies of scale, implementing best practices and performing benchmarking exercises to facilitate a continuous improvement process.
Gert van Niekerk, facilities manager at Santam, says the primary driver behind the decision to hand over the insurance company`s networking functions was to achieve cost synergies and improved service quality.
"Negotiations with Dimension Data resulted in the company taking over our networking department, and providing a complete networking service back to us.
"Technology is not our core business and it has become increasingly difficult to find the depth of skills necessary to maintain a world-class IT division. These skills are, however, available from external sources and we selected Dimension Data to provide the skills and fulfil this role more effectively than we can," says Van Niekerk.
He says the decision to appoint Dimension Data as the preferred networking partner was determined through an in-depth evaluation process. As Dimension Data was familiar with Santam`s networking topology - having supplied the technology and related services for the past three years - this gave the technology services company a firm "foot in the door".
Anne Smith, Dimension Data account manager, says: "The partnership ensures efficiencies through bridging onsite capabilities with remote expertise and services from an extensive national and international knowledge skills base."
The agreement has resulted in the transfer to Dimension Data of 26 Santam IT personnel, who now form part of the overall team that provides the holistic Teamsource service.
The relationship with Santam comprises a series of services delivered as part of Dimension Data`s Global Services Operating Architecture (GSOA) that include a focus on network management and application support; strategic consultation; Insite monitoring service; Uptime maintenance and TeamSource outsourcing partnership.
Following the take-over of Guardian National Insurance Company in 2000, Santam became the leading short-term insurer in SA, with a market share close to 30%. Assets total more than R7 billion, while a countrywide infrastructure, broker network and over 650 000 personal lines policyholders, positions Santam as the leading short-term insurer.
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