Alliance with Computer Sciences Corporation
OLD MUTUAL PLC
29 October 1999
OLD MUTUAL PLC
OLD MUTUAL LIFE ASSURANCE COMPANY (SOUTH AFRICA) LTD
ENTERS INTO ALLIANCE WITH COMPUTER SCIENCES CORPORATION
EL SEGUNDO, Calif. And Cape Town, SA - Old Mutual Life
Assurance Company (South Africa) Ltd ('Old Mutual') and
Computer Sciences Corporation ('CSC') today announced a seven-
year information technology (I/T) management agreement.
Estimated value of the agreement over the full seven years is
approximately USD 300 million (R2.1 billion).
The agreement calls for CSC to manage Old Mutual's South
African I/T infrastructure including mainframe and midrange
computers, servers, desktops, help-desk and system software
support and will form the basis of CSC's infrastructure
delivery capability throughout the South African market.
Formal transition of I/T operations from Old Mutual to CSC
will occur November 1.
As part of the agreement, an estimated 430 staff employed by
or contracted to Old Mutual South Africa will join CSC.
Existing alliances that Old Mutual has established with other
information technology organisations such as Omnilink and
Uskotec will not be impacted.
According to Gerhard van Niekerk, managing director for Old
Mutual South Africa, 'Old Mutual's objective to maximise
shareholder value is fundamental to the alliance. This will be
achieved through reduced costs, improved productivity, and
through participating in the further development of CSC's
business in South Africa. At the same time, Old Mutual will be
able to place additional focus on the strategic exploitation
of technology-based solutions to meet our customers current
and emerging needs. '
At a media briefing in Cape Town today, Old Mutual chief
information officer, Vic Lumby, said the alliance will give
Old Mutual access to CSC's international practices, procedures
and skills. 'We recognise that efficient use of information
technology is essential to Old Mutual remaining a leading
financial services group in South Africa. As our I/T
infrastructure services partner, CSC can bring huge advantages
in terms of flexibility and responsiveness in a changing
market. The greater experience and economies of scale brought
to bear will further increase Old Mutual's competitiveness.
'Services, service levels and pricing will reflect the needs
of Old Mutual's business units and we anticipate real, long
term operational savings. End user satisfaction will increase
as will the professional development opportunities for
transitioning staff. Most importantly we will continue to
focus internally on the design, development and integration of
business systems to meet market and customer needs.'
Added Van B. Honeycutt, CSC president, chairman and chief
executive officer, 'This deal makes CSC the leading I/T
services provider in South Africa. Old Mutual is the largest
financial services company in South Africa and is on a dynamic
course of growth. Our goal is to support their ambitious
plans by creating a more efficient, streamlined
infrastructure.'
Honeycutt noted that as part of the agreement, CSC has
appointed its first country manager to oversee all activities
in South Africa. Martin Vergunst has been named CSC's new
division managing director, African region.
'Since 1991, CSC has successfully integrated people, processes
and services for more than 80 companies through sourcing
agreements, embracing best practices and innovations for each
company. This agreement makes CSC an I/T leader in South
Africa and the alliance will clearly strengthen and support
CSC's presence and aggressive expansion plans in the region,'
Vergunst said.
Vergunst added that CSC's flexible culture and demonstrated
I/T excellence will improve customer service, reduce costs,
streamline Old Mutual's I/T infrastructure and improve its
global delivery capability.
'As I/T requirements in the financial services industry become
more complex and sophisticated, CSC is positioning itself to
provide added value by formulating business strategy, driving
business processes, enabling innovation and transforming
competitive models,' Vergunst said.
Issued by: Bruce Allen
Head: Group Media Communication
Old Mutual South Africa
Tel: 021 509 2732
Cel: 082 453 8298
E-mail: ballen@oldmutual.com
On behalf of: Old Mutual and CSC Computer Sciences
Contact: Vic Lumby
Chief Information Officer
Old Mutual South Africa
Tel: 021 509 2037
Martin Vergunst
Managing Director
CSC South African Division
Tel: 021 509 1883
Cel: 082 903 0518
E-mail: mverguns@csc.com
Juliet Kimlim
Marketing Business Manager
CSC EMEA
Tel: 021 509 1883 / +44 1276 804 550
Cel: +44 7803 211673
E-mail: jkimlim@csc.com
Nicholas Williams
College Hill
Tel: +44 171 457 2020
Email: nick.williams@collegehill.co.uk
NOTES TO EDITORS
Old Mutual plc is an international financial services group,
based in London, with a substantial life assurance business in
southern Africa and an integrated portfolio of activities in
asset management (including unit trusts, portfolio management
and stockbroking services), banking and general insurance.
On 12 July 1999, Old Mutual plc listed successfully on the
London, Johannesburg, Namibia, Malawi and Zimbabwe Stock
Exchanges. On 20 September, Old Mutual joined the FTSE 100
Share Index.
Together with its two JSE listed subsidiaries, Nedcor and
Mutual & Federal, Old Mutual is the leading financial services
group in southern Africa, measured by total assets. In the UK,
Old Mutual's interests include Old Mutual Asset Managers
(OMAM), Capel-Cure Sharp and Albert E. Sharp Securities.
Based on the recent share price of 130p, Old Mutual had a
market capitalisation of £4.5 billion. As at 30 June 1999, Old
Mutual's embedded value was £4.7 billion, an increase of 34%
over the value at 31 December 1998. Total third party funds
under management, as at 30 June 1999, were in excess of £40
billion.
For more information, visit the company's web site at
www.oldmutual.com.
Computer Sciences Corporation helps clients in industry and
government use information technology to achieve strategic and
operational objectives. With 52,000 employees in more than
700 offices worldwide, the company tailors solutions from a
broad suite of integrated service offerings, including e-
business strategies and technologies; management and I/T
consulting; systems consulting and integration; and I/T and
business process outsourcing.
Since its formation in 1959, CSC has been known for its
flexibility in its relationships with clients. CSC has formed
similar alliances with a number of world-class companies
including British Aerospace, JP Morgan, DuPont, Hughes
Electronics, General Dynamics and NASA. Through numerous
agreements with hardware and software technology firms, the
company is able to identify and manage solutions specifically
tailored to each client's needs. CSC had revenues of $8
billion for the twelve months ended July 2, 1999. Its
headquarters are in El Segundo, California.
CSC Computer Sciences (South Africa) is based in Cape Town.
Currently CSC has about 70 I/T employees in South Africa.
Banking customers include Nedcor Bank, ABSA and FNB, a
division of the FirstRand banking group, where CSC provides
systems integration and product support for various CSC
software applications. In addition, CSC is part of an
innovative joint venture with Hollard Life Assurance, offering
group benefits products for the rapidly changing employee
benefits market in South Africa. CSC provides state-of-the-
art administration systems and back-office processing to
Hollard.
CSC's Financial Services Group offers a comprehensive array of
business and technology solutions which support the complex
requirements of the evolving global financial services
industry. Customers include more than 1,000 banks, insurers,
investment firms, consumer finance companies and other major
financial services organisations around the globe.
For more information, visit the company's web site at
www.csc.com
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