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More software development going to India...
By Andy McCue
Published: 2 April 2007 15:06 BST
Co-operative Financial Services (CFS) has signed an extension worth up to £100m over the next five years to its outsourcing contract with Xansa that will result in more work being sent overseas to India.
The contract extension broadens the scope of the existing 12-year agreement to include the Co-operative Insurance Society insurance business of CFS, with software development and support now being handled in both the UK and India.
CFS initially signed a seven-year, £22m deal with Xansa back in 1994 and this was extended with a further six-year, £38m contract in 1998.
Special Report: Inside India
In February silicon.com's Steve Ranger visited the Indian tech hotspots of Bangalore, Mumbai, Pune and Hyderabad. Click on the links below to see photo galleries of the cities and companies visited.
♦ Satyam's IT campus
♦ Hyderabad's tech parks
♦ Bringing tech to rural India
♦ High-tech on the streets of Pune
♦ Pune - the new Bangalore?
♦ Boom town Bangalore
♦ Bangalore's Electronics City
David Anderson, CEO of CFS, said the agreement will help the company create a unified application development and maintenance service.
In a separate announcement Xansa's NHS Shared Business Services (SBS) joint-venture with the UK's Department of Health has been awarded a £19m deal to provide finance, accounting and payroll services to NHS Professionals - an NHS agency responsible for recruitment and management of 58,000 health service customers, suppliers and flexible workers.
The deal with NHS Professionals will lead to a cost-reduction of £5m over six years by integrating the NHS' largest single payroll operation into the existing NHS SBS payroll service.
Peter Coates, deputy director of finance at the Department of Health, said in a statement: "This new contract is a blueprint for how public sector shared services should work."
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