Success Stories
Top Norwegian Insurer KLP Outsources IT to Improve Financial and Operational Performance
Client:
KLP ForsikringUtfordring
- Stay in step with a low-cost operating model by consolidating a range of IT systems
Løsning:
- Outsource IT to CSC
Resultater:
- Selected CSC for industry experience and cost efficiency, plus faster and more secure service than KLP could provide independently
Norway’s largest life insurer, KLP, achieved a commendable 3 percent return on assets in 2002 despite turbulent markets that undermined many insurers. Now, KLP plans to improve performance by extending its low-cost operating model and outsourcing IT operations to CSC.
Support for a Low-Cost Operating Model
KLP Forsikring specializes in insurance and pension services for the Norwegian municipal sector. To support its existing business and expand new channels to market, such as the Internet, KLP relies on a range of IT systems and applications. But, potentially, this runs counter to KLP’s low-cost operating model.
KLP investigated Norway’s major IT suppliers, looking for a more cost-efficient solution. It decided to consolidate its main IT service requirements with one supplier and selected CSC.
The Economies of Scale
CSC now has responsibility for the infrastructure, maintenance and development of KLP’s IT solutions, including Web hosting for the “Netpension” offering.
IT director Rune Maeland is pleased with the new arrangement. Of CSC, he says: “They are skilled in running large data systems and we are able to take advantage of CSC’s large scale advances. The demand for good accessibility would have resulted in higher costs if we had to host our data systems ourselves.”
Access to Faster, More Secure Service
KLP has offices in Oslo, Bergen, Trondheim and Copenhagen. The network connecting these offices ensures that KLP — and its clients — can communicate easily with CSC’s data center. CSC provides faster, more secure service than KLP could achieve independently.
Maeland says: “The outsourcing solution works well for us. We do not have to support costly competence in-house, but we have access to good solutions from a large IT provider with extensive knowledge of the insurance industry.”
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