26th Oct 2007 12:15
Innovation Group PLC26 October 2007 26 October 2007 The Innovation Group plc Contract Win The Innovation Group plc ('Innovation Group') (LSE: TIG.L), which providesoutsourcing services and software solutions to the world's insurance providers,today announces a contract signing with a leading provider of insurance andmembership services in the United States. The contract extends the relationshipwith an existing client following the implementation of the Innovation PolicyAdministration System. The contract is estimated to be worth USD$5 million over the next 24 months andcontinues the development of a relationship that began in 2003. The contractinvolves the Innovation Group providing the insurer with Application Support andMaintenance services. The contract will commence in October 2007. Enquiries: The Innovation Group plc +44 (0) 1489 898300 Hassan Sadiq, Chief Executive OfficerPaul Hemsley, Group Finance Director College Hill +44 (0) 20 7457 2020 Sara Musgrave +44 (0) 207457 2049Ben Way +44 (0) 207 457 2055 Notes to editors: The Innovation Group plc ("Innovation" or "Group") provides outsourcing servicesand software solutions to insurers and other risk carriers. The softwaresolutions are designed for the handling of policy and claims administrativeprocesses within the insurance industry. The solutions can be utilised inconnection with the Group's outsourcing operations or implemented on a standalone basis. Approximately 77% of the Innovation Group's total revenues are nowrecurring with the remainder coming from the sale and support of its softwaresolutions. The Group provides software and outsourcing services on a non-brandedbasis and does not perform insurance underwriting functions. The global BPO market is estimated to grow at 14% CAGR from 2007 to 2010according to IDC (May 2006) and outpace IT services. In North America, BPO isestimated to grow by an 8.8% compound annual growth rate to $100 billion by2009. Gartner 2005. Datamonitor, August 2006, has also said there has been a continued increase inthe propensity to outsource business processes in the insurance industry with47% of insurers using one or more BPO services in 2006 compared to 41% in 2005.Claims and policy administration BPO (Innovation's specialty) are the highestpriority business functions for BPO and among the fastest growing BPO areas. Innovation has over 220 global clients including the Ford Motor Company, Aviva,AXA Insurance, Royal & SunAlliance, Toyota (South Africa) and Zurich (UK). TheGroup processes more than 3 million claims per year with 20% direct claims costsaving achieved. The software operates in 8 languages and the Group hasapproximately 2000 people across offices in North America, the UK, Germany,South Africa, Australia and Japan. www.innovation-group.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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