An internal Legal & General e-mail has revealed the company could soon outsource its IT infrastructure and some IT services to either IBM or Fujitsu, and warns employees to prepare to be transferred to the supplier that is chosen.
The company that wins the contract will host Legal & General's IT infrastructure and possibly provide other IT services.
Legal & General said it wants to ensure its IT infrastructure can support future business growth and reduce the risks associated with creating its own bespoke datacentre.
Other services that could be outsourced include infrastructure and operations, IT security operations and assurance, and parts of IT procurement and IT supplier relationship management.
"We are considering outsourcing these services with a single provider because we believe this will give us the most straightforward operating model - with clear accountability or provision of service. It will also allow us to make best use of the third party's technical and operational expertise," said an e-mail sent to the Legal & General workers affected.
The field of possible suppliers has been reduced to two. "We will now be entering into a more detailed analysis phase with Fujitsu and IBM. This will enable Fujitsu and IBM to understand our current infrastructure and how we deliver related services in more depth."
The staff were told that workers will be transferred to the supplier. "There is still a long way to go, but if we are able to reach agreement the likely outcome is that the services described above would be outsourced to one of these suppliers and employees currently carrying out those services would see their employment transferred in accordance with TUPE legislation."
If a deal is signed Legal & General said there will be new roles created internally to oversee the contract.