Sopra Steria has been working with Royal London Group since June 2014 to deliver application management and development services across its life and savings closed book business. During that time we have delivered a high volume of change, enabling considerable Total Cost of Ownership (TCO) savings for key business services, as well as reducing delivery and business risks. Our high quality delivery has been achieved via a cost optimal delivery model, utilising both UK on-site and Indian
In 2015, as a part of the business transfer of the life and savings book, RLG acquired the life insurance and savings legacy estate from the Co-operative Group. The estate ran on a number of legacy technologies, some out of support. The program code was complex, with a number of recurring production incidents and the batch operation was sub-optimal. All of these factors contributed to high run costs and on-going operational risks that needed to be addressed.
From day one both parties placed a significant focus on optimisation, cost and risk reduction and Sopra Steria put in place resources to identify and deliver improvements. The service agreement provided a framework within which optimisation was incentivised, with a gainshare commercial model to allow benefits sharing.
"In addition to improving financial performance for the closed book business, optimisation has delivered a more streamlined and lower risk estate, with increased maintainability and change agility."
Royal London Group
Transformation has been achieved over a 2 year period, with a number of improvements being successfully implemented:
- a strong delivery and change process framework has been established
- key risks have been identified and remediation plans defined to address these
- a pipeline of prioritised cost reduction changes have been defined and delivered
- root cause analysis has been undertaken and fixes developed to address recurring incidents / failures
- decommissioning of redundant data, processing and software has taken place to reduce required infrastructure capacity, storage and licensing costs
- automation of regular scheduled activities
- use of performance analysis tools to identify inefficient program code, which has been updated and streamlined.
Substantial cost and risk reduction have been achieved;
- 40% reduction in Application run costs
- 60% reduction in Incidents
- 50% reduction in mainframe capacity requirement
- 75% reduction in number of call outs