CGI helps Sun Life Financial maintain
competitive advantage

"One of our key corporate objectives is to reduce administration costs by 70 per cent and CGI has contributed towards this target.”

Peter Hanby, CEO at Sun Life Financial, UK

Tracing its roots back to 1871, Sun Life Financial has grown to become a leading international provider of financial services with total assets under management of $329 billion as at December 31, 2000.

The Sun Life Financial group of companies provide a wide range of savings, retirement, pension, and life and health insurance products and services to individuals and corporate customers in Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, Bermuda, and Chile.

The Challenge
As part of Sun Life’s corporate objectives to reduce administration costs, the company decided to outsource its UK IT operations function. Following a thorough evaluation of potential service providers, in December 2000 CGI Group Europe (CGI) was selected as the IT services partner for the future.

“Our evaluation criteria included cost reduction objectives, staff opportunities, flexibility, risk management, and ‘cultural fit’,” explains Peter Hanby, UK Chief Executive Officer at Sun Life Financial. “We were confident with CGI that we were choosing an IT partner, with the flexibility to adapt as our company changes, rather than just another vendor. One year later this certainly proved to be true and we now know that we made the right choice.”

The Strategy
Under the terms of this initial contract, which spans a seven year period, CGI runs and supports all the IT infrastructure including mainframe, midrange, UNIX and NT systems, and a voice and data network with up to 2,000 users and desktops. The project began in January 2001 with the successful transfer of more than 60 staff and contractors from Sun Life Financial to CGI.

Within the first year, Sun Life extended the contract with CGI to run the company’s help desk and security operations transferring a further 10 staff under TUPE - Transfer of Undertakings (Protection of Employment) Regulations 1981, in October 2001.

This contract clearly demonstrates CGI’s ability to provide complete end- to-end IT services to its customers. For Sun Life, to additionally outsource its security functions and its Help Desk, it demonstrates a great trust in CGI and highlights the successful relationship that has developed since the project began.

The Technology

• Mainframe: Mainframe running OS/390
  
  
• Servers: IBM RS/6000 running AIX, Compaq Proliant servers running Windows NT, IBM servers running Netware for file and print services
  
  
• Desktop PCs: IBM and Compaq
  
  
• Networks: Nortel Meridian voice and data networks

The Result
CGI’s contract has already begun to help Sun Life Financial achieve reductions in its administration costs. Peter Hanby comments, “One of our key corporate objectives is to reduce administration costs by 70 percent and we believe that CGI has contributed towards this target. In addition to increasing the cost efficiency of our IT support functions, this outsourcing contract has greatly broadened career development opportunities for our IT staff.”

The effect on employees following any outsourcing contract is key and CGI believes that the staff have all coped very well with the transition. The workforce has been given a new lease of life as employees view the change as a positive opportunity to advance their careers with a specialist IT company whose core business is the provision of IT services to its customers.

Peter Hanby continues, “CGI has demonstrated huge flexibility throughout the project. Sun Life has experienced a number of significant changes in its business since the contract was signed and CGI has worked with us to ensure that as our IT partner it remains flexible and responsive to our needs.”
After all, IT outsourcing is a long-term partnership and it is critical to ensure that the relationship continually delivers benefits to both parties. CGI continues to adapt and redefine its relationship with Sun Life as the company’s needs change.