International outsourcing corporation, Computer Sciences Corporation (CSC), has announced that it has signed an IT applications outsourcing contract with Zurich Financial Services, an insurance-based financial services provider. The value of the seven-year agreement is said to be approximately $1.3bn.

Under the agreement, Zurich, whose UK subsidiary sponsors the Rugby Football Union's elite Premier division, will contract CSC to assume responsibility for the provision of all applications development and support services to its businesses in the US, UK, Switzerland and Germany.

The deal will see 1,600 Zurich employees transferring to CSC in the autumn of this year. Subject to the successful completion of merger approvals, Zurich's German IT staff is then expected to transfer later on, during the summer of 2005.

The global finance company is hoping that the new relationship will be an enabler for its evolution from a diversified business to a globally leveraged business, says Zurich CIO, Michael Paravicini. 'This agreement will introduce new efficiencies in applications service delivery and help us direct the right resources to the right business priorities when and where we need them,' he told SM365.