New Model Adviser - For professional financial planners

Register free for our breaking news email alerts with analysis and cutting edge commentary from our award winning team. Registration only takes a minute.

Prudential drops Capita from £700m pension contract

Capita will lose its administration contract for M&G Prudential’s life and pension policies from 31 July.

Prudential drops Capita from £700m pension contract

M&G Prudential has dropped Capita as the administrator of its life and pensions contracts.

When the deal was first announced in 2007, Capita said the contract was worth £722 million over 15 years. In a statement released today the outsourcing company said that over 2017 the deal with Prudential added £80 million of revenue. 

M&G Prudential said the contract for administration of these pension contracts will be moved from Capita to Diligenta, a subsidiary of Tata Consultancy Services from 31 July.

The deal will see 1,100 Capita roles in the UK move over to Diligenta with a further 700 Capita jobs in India move to Tata Consultancy Services.

Capita has provided administration for M&G Prudential, including for its PruFunds, for the last 10 years. 

The new contract with Diligenta is for a 10 year period, and will also see it provide some of Prudential’s IT infrastructure.

Around 180 Prudential jobs will move from M&G Prudential under the deal.

John Foley, chief executive of M&G Prudential, said: ‘This partnership with TCS (Tata Consultancy Services) 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 more efficiently.

‘Given its scale, its digital expertise and proven experience in the administration of savings and investments, TCS is the best choice.’

Capita's share price fell following the announcement, hitting high profile fund managers including Neil Woodford and Mark Barnett.  

Share this story

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
More Content
7523.07 + 63 0.85% 04:35
More Content

Related Fund Managers

Mark Barnett
Mark Barnett
89/91 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: 1.27%
Neil Woodford
Neil Woodford
91/91 in Equity - UK Equity Income (Performance over 3 years) Average Total Return: -12.21%
More Content

BUSINESS

2 Comments Why MPs should receive subsidised financial advice

Why MPs should receive subsidised financial advice

Giving MPs more benefits might seem outrageous, but it could help make politics more inclusive and bring home the value of financial planning to legislators

ADVICE

7 Comments Meet the firm offering financial planning for £40 a month

Meet the firm offering financial planning for £40 a month

‘I have spoken to chief executives and people earning hundreds of thousands of pounds. But also people at the opposite end of the scale, who have no real wealth’

twitter_banner

INVESTMENT