Prudential signs £722m outsourcing deal

Insurer will transfer 3000 staff to Capita under the terms of the 15 year deal

Prudential UK will save an annual £60m over three years

Prudential has signed a £722m, 15-year contract with Capita under which up to 3000 staff will transfer to the outsourcer.

Up to 1750 UK Prudential employees and 1250 Mumbai-based staff are affected by the deal, which covers a range of services including customer service and IT support.

Prudential UK will save £195 million by 2010 and expects to see a 32 percent reduction in unit costs per-policy by 2011.