LähiTapiola outsources ICT services to joint venture formed with CGI
LähiTapiola has scaled its ICT services to meet future needs. The group's outsourcing services are now provided by the joint venture LTC-Otso, established together with CGI.
LähiTapiola is a mutual group owned by its customers. LähiTapiola's products and services comprise non-life, life, and pension insurance, along with investment and saving schemes.
LähiTapiola's network of regional companies consists of 19 regional mutual insurance companies and a business unit operating like an independent regional company in the Capital Region.
LähiTapiola employs approximately 3,400 employees, of whom half work in its regional companies. The group has nearly 1.6 million owner-customers.
LähiTapiola aims to be the best in the financial industry, and this requires a great deal of IT support. In addition, LähiTapiola faced an extensive merger aimed at renewing the company and safeguarding its service levels. LähiTapiola decided to outsource its internal IT unit in order to complete information system projects required by the merger on schedule.
LähiTapiola sought a partner capable of providing ICT services more efficiently and flexibly. The goals of the new joint venture were the development and provision of ICT services for LähiTapiola and the achievement of cost-savings, quality improvements and greater customer satisfaction.
Finland's largest insurance company LähiTapiola and CGI joined forces and established the LTC-Otso joint venture.
LTC-Otso works close to the customer, and most of its employees have wide experience with customer environments. LTC-Otso is familiar with the business processes, culture and practices of customers in the banking and insurance sector.
This model combines local knowledge and cooperation with a global supplier; LTC-Otso leverages CGI's global expertise, operating models and best practices in its operations.
A success story
LähiTapiola has made the transition from an internal IT unit to outsourced ICT services. The results of the joint venture have had an impact on both companies.
LTC-Otso has successfully completed projects related to LähiTapiola's merger and measures required by the creation of Elo.
LTC-Otso employs just over 300 personnel in Espoo and Tampere. In the summer of 2015, Otso established a Shared Service Center in Lappeenranta in order to secure sufficient expertise and capabilities in new fields of technology. LTC-Otso has also entered into a close partnership with Lappeenranta University of Technology, with the objective of developing even better services and new, innovative solutions for its customers.
The ICT industry is constantly moving forward and LähiTapiola needs the right service-provision capabilities. Cost savings were also sought through the outsourcing arrangement. The models and resources brought to the joint venture by CGI offer both the desired savings and the best solutions in the ICT industry.
The choice of partner was also influenced by CGI's realistic approach to resources and high-quality deliveries, along with the company's ability to leverage offshore resources.
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