UK applications outsourcing vendor Xansa Plc has extended an outsourcing contract with Co-operative Financial Services, CFS, in a move that could pocket it 100m pounds ($196m) over the next five years.
Xansa has provided application development and support to CFS since 1994, but under the new deal which kicks in this May, the scope of the work will be extended to support CFS’s insurance business as well as its core banking operations.
The supplier will deliver applications services from locations in the UK also in India, where 54% of its 8,000-strong workforce are based. CFS said that it hoped the deal would improve its ability to respond to regulatory pressures, and speed the time it could deliver new financial services products to market. CFS’s internal IT department will retain strategic control over its applications development strategy.
There was further success for Xansa in the shape of a 19m pound ($37m), six-year deal to provide provide finance and accounting and payroll services to NHS Professionals, the Special Health Authority which provides staffing services to NHS organizations.
The deal will be delivered through Xansa’s joint venture vehicle with the UK Department of Health called NHS Shared Business Services, which it set up in April 2005, and now provides F&A services to some 200,000 users across 113 National Health Service organizations. Xansa has promised to deliver over 5m pounds ($9.8m) guaranteed cost savings over the life of the contract with NHS Professionals, where it will support some 58,000 workers, customers, and suppliers.