Insurance firm Pearl Group has completed a £486m deal first announced last October to outsource its processing and administration to a UK-based subsidiary of Indian IT services company Tata Consultancy Services.
The 12-year deal 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, the UK-based TCS subsidiary set up to take on the contract. During the course of the deal, Diligenta will consolidate Pearl’s 11 financial and administrative systems onto a single platform.
Pearl Group’s managing director of life services, Jonathan Moss, 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.