IBM wins large consulting contract with Norwich Union

IBM has secured a business-consulting contract with U.K. insurance company Norwich Union that includes some work reconfiguring computer systems but focuses primarily on areas outside of technology, IBM said Thursday.

The two-and-a-half year contract, which was signed at the beginning of the year, is the largest business consulting services deal that IBM has won since it acquired the consulting arm of PricewaterhouseCoopers in 2002 for $3.5 billion in cash and stock.

The deal is reportedly valued at $100 million, a figure IBM spokesman Bill Mew would not confirm other than to say that “it isn’t far wrong.” The contract does not include the sale of computer hardware or software, Mew said.

Norwich Union, which is owned by London-based insurance group Aviva, is looking to IBM for advice on such issues as organizational hierarchy, employee training and streamlining its business processes, as well consulting on the provision and maintenance of IT systems, Mew said. “We are going to analyze, for example, where bottlenecks occur, what can be automated or outsourced or offered to third parties,” he said. “This is about looking to where a business can centralize and integrate for greater efficiencies and to eliminate duplication.”

The fees paid by Norwich Union will be based on achieving benchmarks in areas such as improving productivity, lowering IT expenses and achieving certification with industry standards, Mew said.

Representatives from Norwich Union could not immediately be reached for comment.