KYOBO Life Insurance Signs a 10-Year Outsourcing Contract With IBM

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SEOUL, KOREA - 30 Mar 2006: In the largest deal of its kind for the financial services industry in Korea, KYOBO Life Insurance (KYOBO) has contracted IBM to operate and manage its IT infrastructure.

Under the terms of the 10-year agreement which has a total contract value of approximately 340 million US dollars, IBM will provide IT strategy consulting services to help develop and advance KYOBO's IT vision and strategy. IBM will also manage the company's servers, storage systems, network and desktop computers and operate its data and disaster recovery centers. Additionally, IBM will provide IT skills development and IT management training services, called 'IT University,' for KYOBO's employees.

This outsourcing agreement will provide a reliable and flexible IT infrastructure and a skilled workforce to support KYOBO's long-term vision of being the leading insurance company in Korea and its goal of expanding into north east Asian markets.

KYOBO will be charged fees based on actual computer usage, under IBM's on demand pricing model, providing the company with an IT system which is responsive, flexible and cost-efficient. By converting its IT spending from fixed cost to variable cost, this outsourcing decision will potentially result in significant IT management cost savings, while improving quality of IT services.

KYOBO Life selected IBM Korea from five local and international competitors.

Chang-Jae Shin, Chief Executive Officer of KYOBO Life Insurance, said, "This contract with IBM will allow KYOBO to achieve global IT capabilities, capitalizing on IBM's extensive experiences with global financial companies. I also expect that KYOBO will be more able to focus on high-value development work for our customers, while saving on overall IT costs."

Hwi-Sung Lee, Country General Manager of IBM Korea, said, "IBM is dedicated to working with KYOBO Life Insurance to provide technology and business consulting services which deliver real business value. We aim to support KYOBO's vision of becoming a leading global insurance company by ensuring that it has robust IT and management systems which are able to quickly scale up or down in response to changing market conditions."

The KYOBO Life announcement is the second such deal for IBM Korea in the local Financial Services industry following a deal signed with Allianz Life Insurance Korea last year. IBM Korea was awarded the contract to manage Allianz Life Insurance Korea's IT infrastructure.

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