Manulife To Outsource Service Support with IBM Canada

In order to build the technical strength required for mergers-and-acquisitions-related systems' consolidation, as well as bring products to market more quickly and create the necessary level of professionalism for expansion into global markets, Toronto-based Manulife Financial has signed a memorandum of understanding to outsource operational service support for its North American IT requirements to IBM Canada (Toronto).

The arrangement will include the insurer's data centers, help desks and desktop computers, according to John Mather, executive vice president and chief information officer at Manulife Financial. The deal also involves the transfer of approximately 400 Manulife employees to IBM.

The decision-making process was led by a group composed of the heads of Manulife business units. "They went through all of the usual suspects," relates Mather, who says the group reviewed 10 or 11 companies. It decided on IBM "because of its experience in the sector and technical expertise," Mather says.

As part of the deal, Bell Nexxia (Toronto), a subcontractor of IBM, will provide support and delivery for all LAN, MAN and WAN infrastructure, as well as telephony services, in order to support Manulife's voice and data communication requirements.