Zurich Financial Services in the UK has struck a ten-year IT outsourcing deal with IBM Global Services.
The agreement in principal between the two calls for the creation of a jointly staffed and managed Advanced Solution Centre giving the insurer fast access to specialist technical expertise.
Around 800 of the 1800 employees and contract staff currently employed in systems development and support capability across Zurich's UK insurance business will transfer to IBM Global Services.
The arrangement is expected to deliver annual cost savings of nearly £15 million through productivity gains and economies of scale, says Zurich.
The financial value of the deal has not been disclosed. IBM says a further announcement will follow once contracts have been signed.