Xansa, the outsourcing and technology firm, was enjoying a double celebration yesterday.

Co-operative Financial Services announced that it is extending and expanding its outsourcing partnership with the company.

In a contract which could be worth up to #100 million over five years, Xansa will work with CFS to create a unified Application Development and Support (ADS) service across the whole of the business.

Xansa, which employs 300 in the West Midlands in offices in Birmingham, and Coventry, has been working with CFS since 1994 when it signed a #22 million seven year agreement to develop and support the Co-operative Bank’s applications. This contract was extended in 1998 and again to this May. The new contract represents a broadening of the partnership to encompass the insurance side of the business in addition to the current banking relationship. As at present, Xansa will provide the service from various locations in the UK and India.

CFS currently faces the twin challenges of a highly competitive market place and an increasing regulatory environment. Creating the unified ADS service is intended to enable it to respond to the regulatory pressures in a cost effective, timely manner.

The technology enabled business services will also allow CFS to expand and enhance its product lines, improving speed to market and thereby react quickly to competitive challenges.

David Anderson, chief executive of Co-operative Financial Services, said: "Xansa has been successfully delivering to Co-operative Financial Services for 12 years. Their approach suits us well."

Alistair Cox, chief executive of Xansa, said: "We are delighted that Co-operative Financial Services continues to choose Xansa as its partner for applications management, IS transformation and web based development. CFS represented Xansa’s first ever financial services outsourcing contract and our second ever outsourcing deal, and this expansion and renewal is a clear endorsement of our excellent and longstanding relationship."

And Xansa has seen NHS Shared Business Services sign a #19 million, six year contract to provide finance and accounting and payroll services to NHS Professionals, the Special Health Authority which provides staff to NHS organisations.

Under the contract, which will produce more than #5 million guaranteed cost savings, NHS Shared Business Services will deliver payroll processing and F&A services to NHS Professionals’ 58,000 workers, customers and suppliers.

The service will be delivered from Tingley, Leeds where both NHS Shared Business Services and NHS Professionals’ National Finance Centre are located, Southampton and from Xansa's integrated delivery centre in Pune, India.

The move enables NHS Professionals to reduce its back office costs and allow greater flexibility for business growth. Peter Coates, deputy director of finance, Department of Health, said: "This contract brings together two key members of the NHS family to realise cost savings and allow more doctors and nurses to concentrate on patient care."

Mr Cox noted: "This contract represents a step change for NHS Shared Business Services, expanding its payroll offering to make it the largest payroll provider in the NHS." It also further underlines NHS Shared Business Services’ position as the leading

back-office shared service provider in the UK public sector."

Xansa employs 7,000 in the UK and clients include the Metropolitan Police and the Foreign and Commonwealth Office.