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Capita replaced as Prudential’s pension administrator

Technology-Tablet-Tech-Computer-500x320.jpgCapita has been replaced as the pensions administrator of M&G Prudential after an open market tender.

The administration of more than four million life and pensions contracts at M&G Prudential will move from Capita to Diligenta, the FCA-regulated subsidiary of Tata Consultancy Services on 31 July.

According to documents published a decade ago, the value of Capita’s contract when signed was worth around £720m over 15 years.

The provider says TCS were the frontrunners to win the contract and improvement in services will help independent financial advisers.

It adds creating a more digitally enabled and customer centric business are key parts of the proposition.

M&G Prudential chief executive John Foley says: “Strategic partnerships are an important part of our five-year plan to improve customer outcomes through the £250m capital investment our shareholders are making in the business.

“This partnership with TCS 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.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. So, a Global Company and they still don’t own their own Client Services Dept. To save a few pennies. Amazing!

  2. I must admit I fail to understand how a massive provider like Prudential cannot run it’s own administration (like it always used to) for cheaper than someone else can (who also needs to make a reasonable profit in doing so).

    Outsourcing for smaller companies, or in specialised areas makes sense, in massive companies like Pru I struggle to understand the sense.

  3. Actually surprised you’re surprised. Most providers have outsourced parts of the administration. In this case this is all the business sold by the old Man from the Pru side distribution not other businesses within Pru UK. Outsourcers use offshoring and are far better at squeezing efficiencies out of staff, suppressing pay rises and re-aligning resources out of account to make their profit.

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