IBM Japan Wins $US533 Million Meiji Life Insurance Outsourcing Contract

Largest Ever Outsourcing Contract in Japanese Insurance Industry

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Japan, Tokyo - 04 Jan 2000: IBM Japan announced today that it has signed a 10 year, $US533m (Yen55.1b) systems outsourcing contract with Meiji Life Insurance, in what is the largest outsourcing contract in the history of the Japanese insurance industry.

The work will be undertaken by IBM's services arm, IBM Global Services, the world's largest IT Services company. This is the latest in a number of strategic outsourcing contracts that IBM Japan has signed over the last few months.

The contract covers administration and management of the host computer and backup centers.
IBM Japan will enhance Meiji Life's systems security by transferring the company's computer and backup centres to an IBM facility which is better prepared for emergencies. In the near future the insurance company will also move its systems administration and computer centre facilities to an IBM datacentre to create cost-effeciencies.

Meiji Life will achieve higher quality systems by utilising advanced global technologies and making use of the rich experience and global technical capabilities of IBM Japan.

The insurance industry is becoming increasingly reliant on information technology to deliver customer services, said Mr. Toru Matsuura, Managing Director of Meiji Life Insurance.

"Outsourcing to IBM Japan will help Meiji Life run its increasingly complex financial service systems with reliability and efficiency. This will enable us to remaining focused on our core business of providing customers with exceptional insurance services, while IBM uses its information technology leadership to provide a strong technology infrastructure to support the company," he said.

Outsourcing is becoming an increasingly acceptable practice in Japan, said Mr Megumu Seo, General Manager, Banking, Finance, Securities & Insurance, IBM Global Services Asia Pacific.

"While information technology is now seen as having a direct link to business success, it is also taking up more and more resources. Through outsourcing, Japanese companies are finding that they can remain focused on transforming their organisations, with the confidence of having IBM provide the information technology infrastructure they require to manage and build their businesses," Mr Seo said.

"This announcement builds on a 35 year relationship between IBM Japan and Meiji Life Insurance, and is a demonstration of the strong relationship the two companies have developed over that time," he said.

Founded in 1881 as Japan's first modern life insurance company, Meiji Life Insurance Co. has 86 agencies and 1,265 sales offices in Japan and 12 sales offices overseas. The company is well known in the industry for its
pioneering role in the development of insurance products.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 136,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realise the full value of information technology. For more information visit http://www.ibm.com/services.

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