A leading Canadian insurer relied on a legacy mainframe operating system that presented functional limitations, restricted scalability, and rising operational costs. These constraints hindered the company’s ability to support rapid business growth and improve user experience. Recognizing CGI’s proven expertise in modernization, the insurer partnered with CGI to transition its core applications to a more scalable and cost-effective platform while ensuring uninterrupted business operations.
Overcoming legacy system constraints
The insurer’s reliance on a traditional z/OS mainframe environment led to several critical challenges. As the business grew rapidly, the IT team faced increasing pressure to manage higher transaction volumes while controlling operational costs. The outdated infrastructure lacked the flexibility necessary to adapt to modern technological advancements, creating a high risk of limited support and restricting the company’s ability to innovate. Additionally, system constraints contributed to longer development cycles, delaying the introduction of new services and hindering the organization’s ability to respond quickly to shifting market demands. The legacy system’s inability to scale effectively further limited future growth opportunities, while its functional inefficiencies negatively impacted both internal users and customer experience.
A seamless modernization approach
CGI’s deep expertise in IT modernization guided the insurer through a low-risk, efficient transformation. A dedicated team from Canada, Portugal, and India collaborated to implement a “lift-and-shift” approach using automation tools from CGI’s IT Modernization Global Competency Centre, ensuring a smooth migration process.
Core applications were migrated from the legacy z/OS mainframe to a Micro Focus/Windows-based platform hosted in a private cloud environment. Key components were upgraded, including DB2 databases transitioned to Microsoft SQL Server, and legacy programs migrated to Micro Focus Enterprise Server. Complex modules such as Assembler, Easytrieve, SAS scripts, and COBOL dialects were reengineered to seamlessly integrate into the new environment. Integration capabilities were also modernized with the upgrade of message queuing interfaces to HTTP-based communication protocols, while security was strengthened by migrating from RACF to AD.
Realizing business benefits
The modernization initiative delivered substantial business value. The move to the new platform resulted in a 90% reduction in annual operating costs, generating significant financial savings. Improved system performance and scalability streamlined business operations, boosting efficiency and accelerating service delivery. CGI’s phased migration approach ensured business continuity, minimizing disruption to end-users. The optimized system functionality enhanced service quality for both stakeholders and customers, while the removal of legacy system dependencies enabled the insurer to accelerate time-to-market for new business initiatives.
The path forward
CGI’s collaborative approach and technical expertise were critical to the insurer’s successful transition to a modern, cost-effective platform. This transformation not only delivered immediate business benefits but also laid the groundwork for future innovation and agility. With a modernized infrastructure in place, the insurer is well-positioned to pursue its long-term business objectives. CGI continues to support leading insurers in navigating complex modernization journeys to sustain operational excellence and competitive advantage.
