Direct Line Group has awarded Capgemini a five year contract to design and deliver new IT infrastructure following its split from Royal Bank of Scotland (RBS).

Capgemini is due to begin work this month moving insurance provider Direct Line away from RBS' IT systems, following its divestment from the banking firm last year.

It is expected that the IT migration project will be complete by the end of 2014, with costs expected to reach £100 million.   The five year contract will cover the design and delivery of new IT infrastructure, as well as providing ongoing support to Direct Line.

The IT migration project will coincide with business transformation plans at Direct Line announced in 2010, with IT infrastructure playing a significant role in areas such as service delivery.

Paul Geddes, CEO of Direct Line Group, said that the Capgemini deal represents the final part of its move away from RBS.

“Over the last few years we have been transforming the business and we are beginning to see the results," Geddes said.  "The planned work on our IT infrastructure is a key piece in this jigsaw, as Direct Line Group finalises its separation from RBS Group.”

Patrick Nicolet, Global CEO of Capgemini Infrastructure Services, added that IT is increasingly a priority among organisation seeking greater agility across their business.  

“Many companies are striving to be more agile and flexible and Direct Line Group, with its far-sighted transformation plan, is no exception," Geddes said.  "They do not want IT to inhibit their ambitions, and that is why we aim to provide them with true alignment between business demands and IT resource provision.”

Direct Line had previously used IT infrastructure provided by its parent company RBS before its separation last year, and has already been setting up new HR systems using IT provided by Workday to facilitate its move.