Press Releases 2009
HCL Technologies signs deal with Equitable Life for $200 Million**
HCL selected as preferred partner to deliver cost reduction and cost
certainty to Equitable Life Assurance Society
London, Stockholm, Sunnyvale, CA and Noida, India - 23
November, 2009 - HCL IBS Ltd. part of HCL Technologies Ltd. (HCL), a
leading global IT services provider, has been awarded a major service contract
by Equitable Life Assurance Society (Equitable Life). The contract, which starts
in March 2011, will deliver substantial cost benefits to Equitable Life's
policyholders through the transfer of core processing and support activities
required to run its closed book of business.
The decision comes after a rigorous and extensive selection process by Equitable
Life, which examined tenders from a number of leading companies. HCL will be
providing an end to end solution including policy administration, finance,
actuarial services, IT operational support and call center services.
Commenting on HCL IBS's appointment, Chris Wiscarson, Chief Executive of
Equitable Life said: "This is one of the most important decisions in the
Society's history. HCL has an impressive reputation and I am confident that they
will provide great service and great value to policyholders. I want to help
restore policyholders' savings and this is an important step in that direction."
Commenting on the win, Stuart Drew, Senior Vice President at HCL
Technologies, said: "This is a major win for HCL IBS since the acquisition
of Liberata Financial Services in 2008 and reflects our position as a leader in
transforming our clients' Life and Pensions operations. However, this deal is
more than just Life and Pensions policy administration. Our expertise enables us
to provide a 'virtual life office' approach to Equitable Life, which is a true
differentiator for HCL. We look forward to welcoming the Lloyds Banking Group
staff who work on the Equitable Life account to HCL as well as a small number of
Equitable Life's own staff. Over the coming years, we plan to develop the scope
of their work to encompass other financial services clients. Ultimately we aim
to transform the Aylesbury operation into a centre of excellence within our
global service delivery capabilities."
Transformation and migration will begin immediately and HCL will take over the
core processes from HBOS in March 2011. Equitable Life expects to make cost
savings of approximately £8 million in the first full year of the contract and
significantly improve cost certainty for the whole of the run off of its closed
book of business. Future savings and predictability of costs means Equitable
Life can reduce its provision for future costs by an amount in excess of £100
million.
Stuart Drew added: "HCL's governance model means that strategic needs are
given as much focus as operational delivery. At HCL we are committed to building
long-term mutually beneficial relationships as well as delivering continuous
improvements to the services we offer. We have developed a growing
onshore/offshore business model which will enable further capability
developments and efficiency improvements. Our platform has the capability to
deliver cost certainty and to provide those benefits on long term contracts. We
are keen to grow our Life and Pensions business, in both the open and closed
book space, and this announcement demonstrates we provide a compelling and
competitive proposition in this market."
The transfer will place over half a million policies under administration with
HCL IBS. Service levels for policy holders will be retained, complying with the
FSA's Treating Customers Fairly (TCF) regime, and the costs of regulatory change
will be absorbed by HCL IBS.
** Combined charges HCL receives over the lifetime of the contract together with
the charges associated with the actual transfer of business from Lloyds Banking
Group to HCL IBS.
Note to editors
Liberata Financial Services, which was acquired by HCL in July 2008, is moving
within HCL overall structure to become HCL Insurance Business Services (HCL
IBS). Lead by HCL IBS' newly appointed Chief Operating Officer, Stephen White,
the division is aligned to HCL's financial services group, which supports
high-profile financial services brands across the globe. This gives UK
customers, such as Equitable Life, greater access to HCL's proven international
financial services capabilities.
About Equitable Life
Equitable Life is a UK life office with over £8 billion under management on
behalf of more than 500,000 policyholders and members of group pension schemes.
Founded in 1762, Equitable Life has been closed to new business since 2000.
About HCL
HCL is a $5 billion leading global Technology and IT Enterprise that comprises
two companies listed in India - HCL Technologies & HCL Infosystems. Founded in
1976, HCL is one of India's original IT garage start-ups, a pioneer of modern
computing, and a global transformational enterprise today. Its range of
offerings spans Product Engineering, Custom & Package Applications, BPO, IT
Infrastructure Services, IT Hardware, Systems Integration, and distribution of
ICT products across a wide range of focused industry verticals. The HCL team
comprises over 60,000 professionals of diverse nationalities, who operate from
26 countries including over 500 points of presence in India. HCL has global
partnerships with several leading Fortune 1000 firms, including leading IT and
Technology firms. For more information, please visit
www.hcl.in.
About HCL Technologies
HCL Technologies is a leading global IT services company, working with clients
in the areas that impact and redefine the core of their businesses. Since its
inception into the global landscape after its IPO in 1999, HCL focuses on
‘transformational outsourcing’, underlined by innovation and value creation, and
offers integrated portfolio of services including software-led IT solutions,
remote infrastructure management, engineering and R&D services and BPO. HCL
leverages its extensive global offshore infrastructure and network of offices in
26 countries to provide holistic, multi-service delivery in key industry
verticals including Financial Services, Manufacturing, Consumer Services, Public
Services and Healthcare. HCL takes pride in its philosophy of ’Employee First’
which empowers our 54,443 transformers to create a real value for the customers.
HCL Technologies, along with its subsidiaries, had consolidated revenues of US$
2.3 billion (Rs. 11,270 crores), as on 30th September 2009 (on LTM basis). For
more information, please visit www.hcltech.com.
About HCL IBS
HCL IBS is a UK based Life & Pensions administration business. The business is
regulated by FSA and delivers service from four locations in the UK, shortly to
be five. HCL IBS employs some 800 people in Britain and has its Head Office in
Croydon. HCL IBS is integrated with the global financial services business of
HCL. This allows HCL to offer insurance clients a managed service proposition
across, Applications Development and Maintenance, BPO and Remote Infrastructure
Management.
For details, contact:
Ranjana Sharma
HCL Technologies
+44 (0) 207 105 8661
James Farquharson
James.Farquharson@hillandknowlton.com
+44 (0) 207 413 3129
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