CGI seals £138m Cox Insurance IT outsourcing deal

Motor insurance firm Cox has outsourced all its IT to CGI in a £138m deal that will see elements of its infrastructure offshored to Canada and India.

More than 200 Cox IT staff will transfer to CGI under TUPE employment laws as part of the 10-year contract.

CGI will manage Cox's computing infrastructure and provide applications management, support and maintenance and development across the insurer's business.

Some services will be provided from CGI's facilities in India and Canada, although no one from the company was able to say which services they are.

Neil Utley, CEO of Cox Insurance, said cost savings will come by allowing it to focus on its core insurance business.

He said in a statement: "We envisage that, net of costs, savings are expected to be in the order of £3.8m per annum.”

The contract goes against the current trend for shorter deals, as seen in a report by Gartner earlier this year that predicted a shift away from this type of full-service 10-year deal towards smaller outsourcing agreements with specific business goals.