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A recent survey polling senior insurance professionals' opinions on
outsourcing suggests that choosing the right IT outsourcing partner is more
critical than ever. 40% say that technology now drives their business and a
further 10% state that it soon will. Half of them also believe that
technology has become too complex for internal IT departments to handle on
their own.

The survey conducted by CMG Admiral, part of global Information &
Communications Technology services group CMG, reflects the recent increase
in IT outsourcing agreements in the industry.

Accessing unlimited skills on demand is said by 40% of insurers to be the
biggest reason to outsource IT. Encouragingly, only 10% feel that the main
reason to outsource, is to combat the IT skills crisis within their
organisation. This shows that many insurers see outsourcing as a strategic
rather than operational solution.

When asked to state the biggest shortcoming of outsourcing, 40% are worried
that third parties don't understand their businesses well enough. But few,
10%, doubt the professional approach of third parties. And, only 10% feel
that outsourcing is better suited to large organisations.

Mike Woods, director at CMG Admiral, commented:
"Insurers realise they need IT systems to be reliable, business focused and
provide an ever evolving capability. To achieve these lofty aims it seems
that many insurers understand that by deploying the skills of external IT
companies they can keep a focus on their core business activities. And,
whilst IT companies need to do more to allay insurers' fears on outsourcing,
it is good to see that very few companies doubt the integrity of third
parties."

He continued:
"It is most encouraging that strategic reasons appear to drive the majority
of outsourcing decisions. It's no longer seen as a tool for large companies
- but as a tool for any sized company to use in order to gain a competitive
advantage."
Ends


Press Enquiries:
James Read/Richard Moore, Citigate Technology, Tel: 01604 232223, Fax: 01604
234501, 7 Albion Place, Northampton, NN1 1UD, Email:
james.read@citigatetechnology.com
or richard.moore@citigatetechnology.com



CMG Admiral Enquiries:

Imogen Beck, CMG Admiral, Parnell House, 25 Wilton Road, London, SW1V 1LW.
Tel 020 7592 4755, Fax 020 7592 4157, Email: imogen.beck@cmgplc.com


Background to CMG Admiral

CMG Admiral is part of the CMG group and represents the combined UK and
Ireland business of CMG and Admiral. With over 3500 staff, CMG Admiral
offers the strength to deliver global solutions locally. CMG Admiral is
focused on enabling clients to gain maximum advantage from technological
innovation. CMG Admiral provides a pragmatic, partnership approach and is
committed to building long term relationships with clients.

CMG is a global Information & Communications Technology (ICT) group, with
leading positions in the provision of business information solutions and
mobile messaging and billing products. Through management consultancy,
systems development & integration, software applications and outsourcing,
CMG helps organisations to build secure ICT infrastructures that enable the
adoption of new business models for electronic and mobile commerce.

Established in 1964, CMG is headquartered in London and Hoofddorp (near
Amsterdam) and now implements and supports applications for customers
worldwide from bases in 16 countries. CMG has proven knowledge, solutions
and products across a wide spectrum of markets, including finance,
transport, telecommunications, media, petrochemicals, utilities, retail,
manufacturing and government agencies. The Group also provides outsourced
business services ranging from payroll processing, call centres and
networked systems to infrastructure management, application maintenance and
hosting.

CMG Wireless Data Solutions has established a leading position in wireless
messaging and gateway products, mobile Internet and e-mail, cell broadcast
and customer care & billing systems. These products are provided to mobile
telecommunication operators and service providers worldwide from offices in
Europe, the Americas and Asia Pacific.

CMG works alongside its customers in long term relationships to generate
success for them. Through the quality of its services, products and
professionally committed people, CMG adds value to its customers'
businesses. This creates a basis for the Group's sustained success.

CMG is listed on both the London Stock Exchange (FTSE 100 and techMARK 100)
and Amsterdam Exchanges (AEX Midcap).

http://www.cmg.co.uk



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