Trans-Tasman mortgage insurer PMI has extended its technology outsourcing agreement with IBM Global Services for another five years to the tune of $4.5 million.
Under the agreement IBM Global Services will manage the Sydney-based insurer's IBM eServer iSeries environment and also provide disaster recovery services.
PMI's head of operations, John Hearne, said IBM provided the most diverse server management offering in the services sector.
The need for PMI to be "online all the time" and provide systems to guarantee reliable and consistent service to customers increased pressure on the company's IT infrastructure, Hearne said, and was a key reason why PMI extended its services deal with IBM.
"It's no longer good enough for a company's systems to have weaknesses, even small ones. The investment required to manage systems of [our] size and scope can be a challenge but outsourcing alleviates that challenge."
PMI has outsourced its technology services to IBM for the past 10 years. The contract renewal marks the third consecutive time PMI has chosen IBM as its outsourcing provider.
PMI is also assessing some parts of IBM's e-business on demand strategy to tap future business benefit, particularly the utility computing option for scaling up or down on IT requirements depending on the company's needs, Hearne said.
PMI provides banks and other mortgage lending institutions with mortgage insurance and risk management products and services.