Prudential is planning to
offshore or outsource most of its 600 UK-based IT
employees.
The insurance company is reviewing posts in its IT delivery unit
Prutech as part of a larger programme to cut costs across its UK
life and pensions business.
Some 3,000 staff working in customer services, customer
operations and IT are covered by the review, which aims to save the
UK operation £195m a year by 2010. Prudential will offshore or
outsource the 600 jobs within the next two to three years.
The insurer expects to spend up to £165m during the cost
reduction programme on redundancy payments and contracts with
outsourcing suppliers.
Prudential began consulting IT union
Amicus in October last year. It is rolling out a
single global workflow application this spring. The application was
developed by the company’s US subsidiary Jackson Life in a service
oriented architecture so that Prudential could cut IT development
costs by reusing the application elsewhere.
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