Capita bags $1.5 bn Prudential contract
Capita Group, UK’s leading business process outsourcing (BPO) firm, has bagged a £722-million ($1.5 billion), outsourcing agreement with life insurance and pensions provider Prudential UK.
By TNN |
NEW DELHI: Capita Group, UK’s leading business process outsourcing (BPO) firm, has bagged a £722 million ($1.5 billion), outsourcing agreement with life insurance and pensions provider Prudential UK. The BPO firm will also acquire business and assets from Prudential, for a consideration of £25 million ($51 million), including part of the business of PPMS, Prudential's offshore centre in Mumbai.
Indian ITeS company TCS and BPO firm Firstsource were also reported to be in the race for the contract. Under the 15-year outsourcing agreement, Capita will provide customer servicing, policy administration, new business processing, claims activity and related IT support to Prudential UK.
“PPMS will remain a captive offshore service centre and will continue to deliver a number of important activities for the UK business. Prudential intends to grow PPMS as a shared services operation for the Prudential Group as a whole,” the financial services company said.
Capita said the PPMS Mumbai centre will be developed into a centre of excellence and will support its plans across the broad range of its service offerings. It already has about 1,000 employees in India and plans to add another 1,000, apart from the 1,250 PPMS employees (of the total 1,800 employees) it will acquire as part of the agreement.
The agreement is aimed at helping Prudential achieve its targeted cost savings. Prudential said the agreement would deliver £60 million per annum of savings by the end of 2010, keeping it on track to achieve total per-annum cost savings of £195 million by the end of 2010.
Indian ITeS company TCS and BPO firm Firstsource were also reported to be in the race for the contract. Under the 15-year outsourcing agreement, Capita will provide customer servicing, policy administration, new business processing, claims activity and related IT support to Prudential UK.
“PPMS will remain a captive offshore service centre and will continue to deliver a number of important activities for the UK business. Prudential intends to grow PPMS as a shared services operation for the Prudential Group as a whole,” the financial services company said.
Capita said the PPMS Mumbai centre will be developed into a centre of excellence and will support its plans across the broad range of its service offerings. It already has about 1,000 employees in India and plans to add another 1,000, apart from the 1,250 PPMS employees (of the total 1,800 employees) it will acquire as part of the agreement.
The agreement is aimed at helping Prudential achieve its targeted cost savings. Prudential said the agreement would deliver £60 million per annum of savings by the end of 2010, keeping it on track to achieve total per-annum cost savings of £195 million by the end of 2010.
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