Axa Sun Life has signed a £163.70m deal with FI Group, a business technology services firm, to outsource its IT operations.
As part of the tie-up, 400 Axa IT staff will be transferred to FI Group. The move is aimed at cutting down on Axa's fixed costs and allow it to focus on its core business.
Axa Sun Life says the deal will increase the flexibility, scalability and value in its applications management service.
FI will be responsible for the support and development of all existing life and pensions admin systems. It will work with Axa Sun Life and other partners to implement new systems and processes to improve customer service, increase speed to market and improve product flexibility and operational effectiveness.
Axa Sun Life chief executive Andy Haste says: “To be a leader in the increasingly competitive 1 per cent world of financial services requires flexibility, responsiveness and cost-effective operations. IT has a crucial role to play in this. One of the key benefits of our partnership with FI is the opportunity it gives us to focus even more closely on the execution of our business plans.”