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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