UK?s Prudential Plc on Wednesday said it has signed an outsourcing partnership with Capita Group for administration services, adding the deal will deliver ?60 million of savings per year to Prudential UK by the end of 2010. The deal provides for Capita to acquire business and assets from Prudential for 25 million pounds, including part of the business of Prudential Process Management Services (PPMS), Prudential’s offshore operation based in Mumbai.
Prudential has proposed for about 1,750 (1,000 in Stirling and 750 in Reading) UK employees and 1,250 Mumbai-based employees to transfer to Capita. FE first reported the news that Capita will acquire Prudential?s Indian captive arm in its July 28 edition this year.
Prudential currently has 1,800 employees in India. Talking to FE, a Prudential spokesperson said, ?We have retained 550 employees with Prudential India and we plan to grow significantly with the same in India.?
The proposed 15-year deal with Capita will enable Prudential to deliver total per-year cost savings of 195 million pounds by the end of 2010, the company informed.