You are here: silicon.com > Management > IT Director

IT Director

Capita gets £110m Pru BPO deal

Move to 'open book' life and pensions BPO significant say analysts

By Andy McCue

Published: 24 November 2003 17:15 GMT

Capita has won a £110m business process outsourcing deal for the administration of the life and pensions book of Prudential.

As part of the 10-year contract Capita will provide services for new and existing policies at Prudential's Dublin-based cross-border life assurance business as well as the policies of one of its customers, St James' Place.

Around 260 staff will transfer to Capita, which is purchasing Prudential's Dublin-based services company, Prudential European Management Services, for an undisclosed amount.

The deal is significant in that it is the first to cover new policies rather than a 'closed book', which covers just existing policies and where revenues naturally decline over the course of the contract as those policies finish.

Rod Aldridge, executive chairman of Capita, said in a statement: "The contract is unique, being the first significant outsourced life and pensions arrangement to administer open book schemes. For both Prudential International and St James’s Place International we will be processing new business alongside existing business, expanding the administration operation rather than managing closed books in run off."

Tola Sargeant, analyst at Ovum Holway, said the deal could trigger a number of similar 'open book' BPO arrangements.

"Having tested the outsourcing water through closed-book deals - and enjoyed the cost benefits - it seems insurance companies are now prepared to trust outsourcers with their new customers and we’re expecting more and more of them to move to open-book deals. All good news for life and pensions BPO players like Capita, Marlborough Stirling and Unisys," she said.

  1. Zones
  2. Management
  3. Networks
  4. Software
  5. IT Services
  6. Hardware
  1. Verticals
  2. Public Sector
  3. Financial Services
  4. Retail & Leisure

  • Jobs
Service Desk Engineer / 1st Line Support - London

Familiarity with Mac, Lotus Notes, Citrix and Unix environments are a plus Wavex encourages development of all staff and has a number of staff ...

Project Manager - Web Based Applications - Life & Pensions

My Midlands Based Life / Pensions / Investments client has a pending requirement for a Technical Project Manager to work on a front-end web ...

Quality Lead - Unilever - Level C-00055185

Job Purpose: This is a vacancy to work on one of Accenture's largest outsourcing deals. Support implementation coordination for agreed QPI, SOX and ...

CIO50 2008
The silicon.com CIO50 2008 profiles the most influential and innovative tech chiefs in the UK across all industries and organisation size, from the biggest FTSE100 companies to high growth dot-com start ups and the public sector. The list was voted on by the UK CIO community and a panel of experts. Find out more in our latest special report.





Quick Sitemap Links: