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By Lisa Burroughes, 13 May 1999 00:15

NEWS Insurance giant, AXA, has appointed Simon Williams as director of business systems. Over the next two years, Williams will oversee the integration of AXA's computer systems with those of Guardian Royal Exchange (GRE), after this week's confirmation that the companies will merge. Other senior IT positions in the combined company have yet to be finalised. AXA said both companies' IT structures will undergo major rationalisation, because although they use similar systems, the firms' overstructures are very different. GRE has a single IT director, covering all the company's products and businesses, while AXA has an IT director for each business unit. Williams' first task will be to integrate the systems of the companies' insurance businesses. AXA announced 2,000 job cuts throughout the UK earlier this week, but a spokesman said: "A minimal number of the job cuts will affect IT staff - but there will be restructuring." AXA employs 600 IT staff, of which 100 are based in Kendal - one of 11 sites to close over the next two years. The spokesman said those staff are likely to be relocated rather than made redundant. AXA said no decision has been made about the impact of the merger on GRE's current outsourcing contract with ICL. Margaret Harvey, partner at law firm, Shaw Pittman, said the result will depend on the terms of the original contract. "It is normal for this event to be mentioned in a contract and it is highly likely that a merger of this scale would give ICL grounds for termination of their contract with GRE. Certainly, the fact that they are closing 11 sites means they would want to renegotiate."