The Guardian Life Insurance Company of America (New York), announced it has awarded outsourced software services to Patni Computer Systems Ltd., in a deal potentially worth $35 million over seven years. According to the initial terms of the contract, Patni will assist Guardian in introducing new life and annuity products, and undertake gap analysis and implementation of IT systems to meet the changing business needs in the insurance marketplace.
Seventy percent of the work will be delivered out of Patni's Offshore Development Centers in India, which is expected to lead to significant cost savings for Guardian. "Outsourcing to Patni offers us not only cost savings for existing systems, but also provides us with a technology vendor with which to collaborate," according to Dennis Callahan, Guardian's senior vice president and CIO. "Patni was evaluated over six months against numerous Indian vendors on various parameters, including quality processes, domain expertise and on-site/offshore capabilities to service the US market. Patni's experience in the life and annuity business was seen by us as a clear differentiator."