Global IT services provider Patni Computer Systems Ltd has entered into a preferred vendor arrangement with Milliman Inc., an independent global consulting and actuarial firm.

As part of the agreement, Patni will provide Milliman's Straight Through Enterprise Processing (STEP) solutions product suite that offers tailored solutions to address enterprise technology challenges for the insurance industry.

"The relationship will bring together unparalleled insurance expertise and proven world class implementation and execution capabilities that will offer the industry the ability to truly put technology at the service of their business needs," according to a formal announcement.

STEP combines actuarial, business and technology expertise to offer a complete suite of component-based tools and solutions, which address life, annuity and long term care insurance policy administration and related issues. Actuarial services are essentially mathematical tables that determine issues such as life expectancy on the basis of the health and age factors for insurance companies.

"Patni leverages 15 years' experience providing IT solutions to the global insurance industry, spanning hundreds of projects and including multiple straight through processing initiatives with insurance customers," the announcement said.

Patni's insurance practice grew 28.4 percent in fiscal year 2004 to $107 million, contributing nearly a third of Patni's overall revenue.

"We are confident that our arrangement with Patni will allow our consultants to provide their clients with a new level of large scale enterprise technology capabilities, by utilising the expertise of Patni and leveraging the power of STEP Solutions technology," Brad Smith, Milliman chairman, was quoted as saying.

Bill Budde, senior vice president and head of Insurance Business Unit, Patni Computer Systems, said: "At a minimum, our goal as a service provider is to help customers increase their operational efficiency."

Patni employs over 10,000 people and has multiple offshore development facilities across eight cities. Patni has 26 international offices across the Americas, Europe and Asia-Pacific. Patni registered revenues of $ 326.6 million for the year 2004.