EUROPE/SOUTH AFRICA – UK software and services provider Marlborough Stirling has made a deal with South African financial services group, Sanlam, to provide life and pensions companies with off-shore internet technology and administration out-sourcing services, targeted mainly at the UK and continental European market.

Customers will have two options: outsourcing services to the UK Marlborough Stirling Administration (MSA), or sub-contracting through Marlborough Stirling to Sanlam, for the same service with about 20% discount.

“That means they have access to the same premium quality out-sourcing service but at a lower cost. The only difference is that they will be serviced from South Africa. All life and pensions companies need to cut costs in order to compete in the sub 1% world, so I am sure many will find this proposition highly attractive,” says Dave Power, consultancy services director at Marlborough Stirling.

Sanlam has an existing portfolio of over 3.5m policies, which it administers at a low cost due to its efficient processes, use of technology, and South African employment costs, according to the company.

Under the new sub-contracting possibility, MSA will remain responsible for the distribution and sales of the service, as well as the customisation, implementation and maintenance of the administrative platform and the management of all client relationships.