Insurance firm Pearl Group has finalised the £486m deal to outsource its processing and administration to a UK-based subsidiary of Indian IT services company Tata Consultancy Services.
The 12-year contract is the biggest business process outsourcing agreement in the UK life assurance market.
It will involve the transfer of 950 of Pearl’s 1,100 staff to Diligenta, a UK subsidiary set up by TCS to run the contract. On taking over the administration of the business, Diligenta will embark on a project to consolidate Pearl’s 11 administrative and financial systems onto a single platform.
Jonathan Moss, Pearl Group’s managing director of life services, said, “The new arrangements provide certainty over a major portion of the cost base well into the future. This is very important protection for policyholders because over the long term the unit cost per policy will be maintained at competitive levels.”
Diligenta is expected to use the contract as a springboard to expand into the UK onshore outsourcing market.