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WALLDORF, Germany and NEW YORK -- Accenture (NYSE:ACN) and SAP AG (NYSE:SAP) have signed an agreement to develop and deliver information technology (IT) solutions for banks and insurance companies worldwide. Together, the two companies will offer financial services companies expanded options for the delivery of IT products and services, including standard solutions, custom solutions and business process outsourcing. The agreement combines the strengths of two market leaders with complementary skills, bringing together Accenture's knowledge of the financial services industry and experience in building custom software packages with SAP's experience in developing its portfolio of cross-industry and industry- specific standard software for banking and insurance. Under the agreement, Accenture and SAP will develop and sell a comprehensive portfolio of solutions and services designed to help banks and insurance companies increase efficiency, reduce operational costs and improve business performance. Initially, the portfolio will consist of SAP's and Accenture's existing banking and insurance solutions, which support a broad range of business functions, including insurance claims management, insurance policy administration, core banking operations and risk management (e.g. Basel II compliance). SAP and Accenture will work together to market the portfolio of financial services solutions to clients, establishing sales and support teams with members from both companies. The two companies will also market and implement SAP's cross-industry solutions for managing business processes such as financials and human capital management (HCM). Accenture will become a preferred integration partner for SAP's financial services solutions and the two companies will establish an implementation team for the portfolio. In addition, SAP will leverage Accenture's industry experience to enhance its training programs for clients on the SAP financial services software solutions in its education centers. Accenture will also become SAP's largest development partner in financial services, and the two companies plan to assign approximately 800 people -- to be based in the United States, Spain and Germany -- to a combined development effort. These professionals will work together to enhance and expand the portfolio of solutions to better meet the requirements of banking and insurance clients on a country-specific basis. The two companies will agree to a development schedule that will include, for example, enhancing policy administration solutions for insurance companies and enhancing country-specific functionality in banking. Accenture and SAP will also work together to integrate their respective software solutions leveraging SAP NetWeaver(TM), SAP's open integration and application platform, to drive down implementation costs and accelerate return on investment for their clients. SAP and Accenture will also maintain their existing relationships with other organizations serving the financial services sector. Under the agreement, Accenture plans to offer business process outsourcing (BPO) services based on the portfolio of solutions, enhancing its current BPO capabilities for banks and insurers. "SAP and Accenture are building on their success in delivering value to banking and insurance companies and combining their strengths to create compelling offerings that will enable financial services customers to run their businesses more efficiently and gain a competitive edge," said Henning Kagermann, chief executive officer, SAP AG. "By expanding our relationship to jointly serve banking and insurance companies, SAP and Accenture will offer customers unparalleled industry-expertise combined with a broader range of solutions, greater implementation flexibility and lower risk." "This agreement builds upon our long-standing relationship with SAP, and further enhances the value we can jointly deliver to financial services clients worldwide," said Joe Forehand, chairman and CEO, Accenture. "SAP and Accenture are setting a new standard by offering a flexible portfolio of options that better position banks and insurance companies to manage their businesses for long-term success. Through these innovative solutions and services, we continue to help our clients become high-performance businesses."