M&G Prudential, the UK and European savings and investments business of British insurer Prudential, has awarded a £500m ($690m) contract to India-based Tata Consultancy Services (TCS) to digitally transform its business and provide service for its UK savings and retirement customers.
Under the terms of the contract, which is valid for a period of 10 years, TCS using its digital platform BaNCS will provide administration support to more than four million life and pensions contracts.
M&G Prudential John Foley said: “Strategic partnerships are an important part of our five-year plan to improve customer outcomes through the £250m capital investment our shareholders are making in the business.
“This partnership with TCS is an essential element of our strategy to create a digitally-enabled business. Our customers will receive a better service – day in, day out – as a result and our colleagues will be better equipped to provide that service.”
As a result of this outsourcing contract, nearly 1,100 jobs from M&G Prudential’s current service provider will be transferred under the TUPE arrangements to TCS’ FCA-regulated, UK subsidiary. A further 700 jobs in India are also likely to move from M&G Prudential’s supplier to TCS.
Furthermore, nearly 180 full-time jobs in London, Reading and Craigforth will also be transferred from M&G Prudential to TCS.
As part of the agreement, TCS will be responsible for the operation of some of Prudential’s internal IT infrastructure.
TCS CEO and managing director Rajesh Gopinathan said: “We will propel this digital transformation through TCS’ continuous investments in digital and technology services. We will also bring the combined strength and capabilities of our deep domain expertise in BFSI and TCS’ strong record of managed policy administration in the UK life & pension industry.
“In addition, TCS’ BaNCS platform will power digitised front, mid and back-office operations which will enable M&G Prudential to become more agile and improve customer experience.”