M&G Prudential, the savings and investments arm of Prudential, has ditched current business processing partner Capita for rival Tata Consultancy Services (TCS) in a bid to streamline pension administration.
The provider agreed a 10-year partnership with Tata Consultancy Services, which will see the pension administration services for some four million life and pensions contracts consolidated into one platform and digitalised in order to speed up service.
Prudential had worked with business process outsourcing company Capita for the past 10 years and will now move contracts to Diligenta, the Financial Conduct Authority-regulated subsidiary of TCS.
John Foley, chief executive of M&G Prudential, said: "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."
Parent company Prudential announced the merger of its UK and European businesses bringing together its insurance and savings arm with M&G Investments in August last year.
At the same time it raised £250m from its shareholders as part of a five year plan to improve customer outcomes, of which strategic partnerships are an "important part", Mr Foley said.
Prudential had undertaken a full market review before signing up TCS and concluded the firm's digital expertise and experience in the administration of savings and investments made it the "best choice" for the business.
Dave Penny, managing director at Invest Southwest, said lead times for services such as fund withdrawals or pension switching, which can take several weeks, needed to be reduced at a number of providers.
He said: "Anything that will create efficiency and reduces the lead time for various servicing tasks can only be a good thing so I am in favour.
"In the modern world lots of clients are doing things on their smartphone so anything that is faster is welcome."
carmen.reichman@ft.com
