Managing strategic IT-based outsourcing projects: The CLASS case in financial services

Abstract

In December 1995, Philip Scott — General Manager of the Life and Pensions (L&P) business of Norwich Union (NU) — presented to his colleagues on the Group Board a progress report on the implementation of L&P’s business systems strategy. He was able to note a number of major achievements:

• under the restructuring and re-skilling plans instigated by Roger Taylor, L&P’s Head of IT, staff numbers had reduced by 40% but productivity had more than doubled;

• the rollout of Image technology, part of the wider Client Administrative Service Systems (CLASS) project, had been successfully completed ahead of schedule and NU was now believed to be the largest user of such technology in Europe;

• development of L&P’s client server / communications infrastructure had also made excellent progress and was similarly expected to reach completion ahead of schedule.

“The IBM solution is recommended because the higher risk of delivery is outweighed by the potential to provide Norwich Union with greater competitiveness in the Life and Pensions Market” — Roger Taylor, October 1994.

“It should have been the perfect partnership”— Roger Taylor, June 1996.