Bangalore, India, and Newton, Mass. (September 6, 2007) — IBM (NYSE: IBM) and Innovation Group (LSE: TIG) today opened a new Innovation Center for Global Insurance in Bangalore, India. The new center will help the companies innovate on next generation core systems, develop new business models, and tap emerging technologies to create competitive advantage and improve the customer experience.
Based at IBM�s Bangalore campus, the new center provides clients with access to hardware, software, and services including IBM System z mainframes, IBM Information Server and DB2 Data Server software, and Innovation Group�s Innovation Policy and Innovation Claims insurance applications that deliver high quality, lowrisk, and cost effective solutions for the enterprise.
�The Innovation Center and the increased focus on our IBM relationship is a response to the success of the partnership in the last 24 months. Our current and prospective customers appreciate the provision of deeper capabilities and the flexibility we offer together in serving the global insurance market. The acceleration of our relationship has been in direct response to our joint customers as well as demand from prospective clients for Claims and Policy Administration Solutions in many key markets,� said Ed Ossie, President of Innovation Group.
In 2005 the companies entered a five-year agreement to create a new client-focused global delivery center and strengthen client site capabilities in key markets. The new center �builds on the original agreement and IBM and Innovation Group will increase joint staffing levels in Bangalore and across other sales regions throughout 2007 to streamline delivery capabilities and meet the growing demand for mainframe-based core systems.
�Insurance companies require core systems that are open, flexible, scalable and secure,� said Norbert Dick, General Manager, Insurance Industry, IBM. �The combination of IBM and Innovation Group technologies coupled with IBM�s systems integration leadership will help joint clients achieve a single view of their customers, lower operating costs, and streamline risk management across the enterprise.�
�Globally, insurers have over 40 technology vendors to consider when replacing their claims or policy administration solution. Having an established sales and delivery partnership between a system integrator and vendor is an important consideration for insurers who look to them to support those processes,� said Stephen Forte, a principal research analyst in Gartner�s insurance practice.
For more information about IBM insurance solutions, visit www.ibm.com/insurance.
About Innovation Group
Innovation Group plc (Innovation or Group) provides outsourcing services and software solutions to insurers and other risk carriers. The software solutions are designed for the handling of policy and claims administrative processes within the insurance industry. The solutions can be utilized in connection with the Group�s outsourcing operations or implemented on a stand-alone basis. 76% of the Innovation Group�s total revenues are now recurring with the remainder coming from the sale and support of its software solutions. The Group provides software and outsourcing services on a non-branded basis and does not perform insurance underwriting functions.
The general BPO market is currently forecasted to outpace other IT services. In North America, BPO is estimated to grow by an 8.8% compound annual growth rate to $100 billion by 2009. Gartner 2005. Innovation has over 220 global clients including the Royal Sun Alliance, Ford Motor Company, Aviva, AXA Insurance Toyota (South Africa) and Zurich (UK). The Group processes more than 3 million claims per year with 20% direct claims cost saving achieved. The software operates in 8 languages and the Group has approximately 2000 people across offices in North America, the UK, Germany, South Africa, Australia and Japan, visit www.innovation-group.com.
Since 2002, IBM and Innovation Group have worked together to deliver proven business solutions for insurance carriers that have brought innovation, clear business value and return on investment. Together they are enabling clients to realize the benefits of transformational change in core insurance functions such as Policy Administration and Claims Management.