Allmerica Saves 25 Jobs, Signs Contract with Keane

As part of a deal that will prevent the layoffs of 25 Allmerica Financial (Worcester, MA) IS employees and expand the carrier's relationship with Keane, Inc. (Boston), Allmerica has signed a seven-year property & casualty application development and management outsourcing contract with Keane. This is in addition to a five-year contract Allmerica signed with Keane in 2000 for the support of applications for its variable annuity business administration systems. Allmerica offers variable life and annuities and various property and casualty products.

Under the new arrangement, 139 Allmerica IS employees from the insurer's Worcester, MA, and Howell, MI, locations have transitioned from Allmerica to Keane. Most of the former Allmerica employees will continue to support Allmerica projects and 25 will be assigned to other Keane initiatives. "Allmerica was going to be faced with not having enough work," for about 25 employees, explains Greg Tranter, CIO, Allmerica. "We asked Keane if they could help us by taking on the additional people that we wouldn't have work for in 2002. We weren't looking for a customer/vendor relationship, but a business partner. This deal shows that they were trying to help us solve a business problem not just trying to drive revenue."

Allmerica chose to expand its relationship with Keane, not only because they were pleased with the support given in the initial contract, says Tranter, but because the economies were right. "Keane's culture is consistent with ours," says Tranter. "Also its reputation is that it's the number one application outsourcer."

In addition to property and casualty application development and management outsourcing, as part of the new contract, Keane will provide development and enhancement services to Allmerica.