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Insurance industry

Computer Sciences Corp. and The Mutual Life Insurance Company of New York Announce Seven-Year Outsourcing Contract

Strategic Insights

— 1 min read

Computer Sciences Corp. (CSC) and The Mutual Life Insurance Company of New York (MONY) have officially signed a seven-year outsourcing contract, marking a significant milestone in the scope of information technology services outsourcing in the insurance industry. Under the agreement, CSC will manage and enhance MONY's information services operations, acquiring certain of MONY's information technology assets and hiring 335 of its employees. The partnership aims to leverage the latest technologies, such as object-oriented platforms and client-server, to develop new applications and business reengineering for MONY's core businesses.

Key Takeaways:

  • The seven-year outsourcing contract between CSC and MONY calls for CSC to manage and enhance MONY's information services operations, including its legacy systems and domestic network.
  • CSC is acquiring certain of MONY's information technology assets and will occupy its 113,000-square-foot data center in Syracuse, N.Y.
  • 335 MONY employees who supported the company's information technology services will join CSC, transferring their skills and expertise to the new organization.
  • The partnership aims to launch an "Insurance Technology Center," which will develop and market the newest technology services and tools to help life insurance companies optimize their operations.
  • The Mutual Life Insurance Company of New York provides life insurance, disability income, and asset accumulation products to individual clients and businesses, with consolidated assets of $16.2 billion as of June 30, 1994.
  • Computer Sciences Corp. has $2.9 billion in annual revenues, with 55% derived from commercial clients and the rest from the U.S. government.

Statistics:

  • 7-year duration of the outsourcing contract between CSC and MONY
  • 113,000 square feet: size of the data center in Syracuse, N.Y. acquired by CSC
  • 335: number of employees from MONY who joined CSC as part of the outsourcing agreement
  • $16.2 billion: consolidated assets of The Mutual Life Insurance Company of New York as of June 30, 1994
  • $2.9 billion: annual revenues of Computer Sciences Corp. (1994)
  • 55%: percentage of Computer Sciences Corp.'s revenues derived from commercial clients
  • 30,000: number of employees in Computer Sciences Corp.
  • 450: number of offices of Computer Sciences Corp., primarily in the United States, Europe, and Pacific Rim countries

Sources:

  • Computer Sciences Corp. (CSC) - (NYSE:CSC)
  • The Mutual Life Insurance Company of New York (MONY)
  • Business Wire - "Computer Sciences Corp. and The Mutual Life Insurance Company of New York Announce Formal Signing of Seven-Year Outsourcing Contract" (Nov. 21, 1994)

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