The new contract will be folded into an existing outsourcing agreement that Gothaer Versicherungen signed with IBM in 1994. Insurance firms Gothaer Versicherungen and Berlin-K?lnische Versicherungen merged two years ago to form Parion.
Under the contract, IBM Global Services will run all of Parion's IT systems and take over application development and maintenance.
Parion and IBM also plan to create a Center of Competence for the insurance industry, focusing on e-business, business intelligence, customer relationship management, and other new technologies.
The agreement is the largest strategic outsourcing contract in the European insurance industry and the biggest outsourcing deal in Germany, according to IBM.
Parion has 6,000 employees and 4 million customers and income of $3.797 billion.