Financial services slinger Prudential is to kick Capita to the curb, cutting short a 15-year mega deal and switching the administration of its life and pension policies to Tata Consultancy Services.
The initial £722m agreement – one of Capita's largest to date – started in early 2008 when Capita took on 1,750 of Pru's people in the UK and 1,250 in India with the grand ambition to save the client £60m a year in operating expenses.
But the arrangement will end at the close of July – Pru CEO John Foley today talked up a shiny new "10-year partnership" with TCS to "enhance service" for UK savings and retirement punters.
He said the "scale, digital expertise and proven experience in the administration of savings and investments" meant TCS came out on top in a beauty parade of suppliers.
"I would like to take this opportunity to thank all those at Capita who have supported out business over the past 10 years," Foley said.
Clearly Capita's handling of the contract was not running as agreed but neither party dished the dirt, preferring instead to make a clean break.
As such, TCS sub-brand Diligenta will assume responsibility for the administration of 4 million pensions. Diligenta said it has already transferred 11 million policies from other holders to its TCS BaNCS digi platform.
Around 1,100 Capita roles across the UK sites and 700 positions identified in India will transfer to TCS, Prudential confirmed.
TCS will also take control of "some of Prudential's internal IT infrastructure". Roughly 180 staff or roles in London, Reading and Craigforth will be moved under TUPE from Prudential to TCS. Capita will still administer Pru's international ops.
Shareholders in Pru will be investing circa £250m of shareholder capital into a range of "transformation programmes" over the next five years to "create a simple, modern, customer-centric savings and investment business".
Capita, whose share price sank by a little more than 7 per cent this morning following confirmation of the contract termination, said it still administers 15 million policies in the UK and Ireland. ®
TCS PR has contacted El Reg to claim it actually handles 17 million policies on behalf of customers, and not the 11 million that was quoted by Prudential in its press release.
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