The contract is believed to be a significant one for IBM in that it marks a shift away from its core area of selling computer-related services. The deal with Norwich Union will become one of IBM’s largest consulting contracts since its acquisition of PricewaterhouseCooper’s consulting arm.
While the agreement does not involve the supply computer hardware or software, IBM is nevertheless expected to reconfigure computer systems at Norwich Union.
Under the terms of the deal, a team of specialists from IBM Business Consulting Services will work with Norwich Union Life to transform its business services division, which consists of internal consulting, application development and maintenance.
The project is expected to enable business services to deliver quality services to the rest of the Norwich Union Life business, to help lead the broader transformation of Norwich Union Life and be more responsive to market changes and needs.
In this highly competitive environment it is no longer enough to simply focus on integrating isolated process optimization initiatives. said David Dockray, managing partner for IBM Business Consulting Services. The success of business transformation initiatives that seek not only to gain significant cost reductions, but also to achieve competitive advantage, will depend on the adoption of and adherence to strategic business models that will allow companies to respond on demand to changing market conditions.
IBM said that an improved business services function would provide Norwich Union with the delivery of complex programs, the provision and maintenance of IT systems and the delivery of innovation through business consulting.
