Image may be NSFW.
Clik here to view.Renewing BPS deals is a key for suppliers in 2013 as they struggle to grow, or even maintain, market share against stiff competition from new and existing players. So renewals from two players in the past couple of days, insurance BPS provider The Innovation Group and Steria, are going to be very welcome.
Yesterday, TIG renewed and extended a key deal with one of South Africa’s largest banks for hosting its policy and claims insurance software. The bank client currently uses TIG software in nine African countries with more than 200,000 policies carried on TIG’s system. The new deal will extend the use to 16 African countries. Pricing of the deal is volume based, and should contribute between £1.8m and £2.5m to TIG’s revenue over the next three years. Continuing to grow business with customers in emerging territories is a good move for TIG as it sees increasing threats in mature markets like the UK and US from SaaS pure plays like Guidewire, and home grown threats from the likes of Quindell Portfolio.
Steria meanwhile, renewed and extended a multi–million pound five-year contract with hospitality and catering company Whitbread for finance and accounting (F&A) services including VAT, reporting, reconciliation, Image may be NSFW.
Clik here to view.general ledger and accounts payable and receivables. Steria is committing to a further reduction of 14% in annual service costs, while also improving operational efficiencies. Steria says it will deliver these benefits through an iterative approach of process re-engineering and incremental innovation. The contract extension will also allow Whitbread and Steria to maintain and develop the existing presence in Chennai and Noida, in India, and increase the scope for further development of existing services.
Both contracts show the increased level of risk and flexibility in pricing and delivery options that BPS suppliers need to be prepared to offer if they hope to renew deals in this ultra-competitive market.