John Hancock Financial, CSC Extend Contract

Annuity administration ITO contract worth $25 million extended; virtualized environment to increase flexibility, generate savings.

Virtual Water Cooler, February 16, 2012

Jennifer Morrell

John Hancock Financial Services, a unit of Manulife Financial Corp., has signed a six-year extension to its information technology outsourcing (ITO) agreement with CSC. Under the agreement, valued at $25 million and awarded during the first quarter of fiscal year 2012, CSC will continue to provide applications and infrastructure services for the carrier's U.S. Wealth Management Division, in support of the administration of more than 1 million fixed and variable annuity policies.

A significant change in the newly negotiated agreement is that CSC will manage the transition from the current mainframe environment, to a new z Linux platform, CSC says. The z Linux platform will lower costs through enhanced operational and energy efficiency; improve service with a simplified and integrated environment; and augment risk management with strengthened resiliency and security features.

CSC says the agreement also includes the licensing of its Customer Service Accelerator, a Web 2.0 software application that helps insurers manage diverse communication channels for consistent service, regardless of the method of customer contact. Through Accelerator, all interactions are centralized and displayed in a single view, allowing customer service representatives to understand customer needs at any point of contact, easily.

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