Old Mutual has signed a huge IT outsourcing deal with Dimension Data, which is being supported by partners Telkom and Nashua.

The contract, worth R2,5bn over its five-year term, will result in Didata and partner Telkom managing Old Mutual’s communications and technology infrastructure for the next five years. The contract is meant to help Old Mutual lower long-term operational costs, offer differentiated services tailored to user demand and become more competitive and customer focused.

Old Mutual offers long-term savings and investment products, banking (through Nedbank) and short-term insurance (through Mutual & Federal).

In terms of the agreement, Didata and Telkom will provide all elements of Old Mutual’s “communications tower”. This covers data services, including the wide-area network, branch and campus local-area network, third-party connectivity and Internet access, voice services, multimedia collaboration and management services.

The outsourcing contract is expected to generate “significant local savings for the operating businesses involved”, according to Old Mutual. — Staff reporter, TechCentral