Pension fund manager Resolution has signed a £580m 12-year outsourcing contract with Capita.
Resolution is the UK-s largest manager of in-force life funds, managing assets worth £61bn for around 7 million policyholders.
The strategic partnership will see Capita deliver IT services, customer services, policy servicing, claims and new business processing for approximately 4.5 million policyholders, plus future new business for Phoenix Life Assurance (formerly Abbey National Life), Scottish Mutual, Scottish Provident and Phoenix Life funds.
Resolution group chief executive Mike Biggs said: "We chose Capita because
we believe that they can best deliver a business transformation programme designed to increase the quality and dependability of our services to customers.”
Under the terms of the contract, about 2,000 staff will transfer to Capita from 1 August.
The deal will see a substantial amount of back-office work offshored, but customer-facing jobs and what the two firms dubbed “voice” roles will remain in the UK. Customer data will also be kept in the UK.