October 11, 2006 07:26 ET

Amicus - Prudential Offshoring Fears

LONDON, ENGLAND--(CCNMatthews - Oct. 11, 2006) - Amicus union has expressed concerns that the Prudential are to look at the possibility of offshoring large parts of its IT work.

At meetings held yesterday 10/10/, IT staff were briefed on the future of the Prudential's IT functions. The company have told staff that offshoring has not been ruled out.

Amicus, the union that represents Prudential employees, are raising questions about the company's future plans. Amicus is concerned that this could be the tip of the iceberg, as the expected cost savings made from offshoring IT work will be only a small part of the GBP150 million cost savings announced by the Prudential recently.

Amicus National Officer David Fleming says,

"If this is the case we fear this may be the tip of the iceberg for Prudential staff in the UK. We are asking the question how committed is the Prudential to its UK staff and its customers?"

IT work is currently undertaken by employees working in a department called Prutech, in Reading, Craigforth and London. There are around 600 employees currently working in Prutech with about 250 in Reading and 250 in Craigforth.

The Prudential have engaged with employees and Amicus at the very earliest stage and therefore it is unknown how many roles will be affected. At this stage offshoring is an option being seriously considered and if it goes ahead it will
happen over the next two to three years leading to a number of redundancies.

Amicus welcomes Prudential's decision for consulting at the earliest possible stage and believe that this may help avoid compulsory job losses.

Notes to Editors

Prudential UK employs around 8,000 people in the UK - 2000 based in Reading and 2500 based in Craigforth (Stirling).

Around 600 people work in Prutech.

Since 2002 Prudential have offshored around 1200 jobs in Mumbai in India.

In June 2006 - Prudential announced its intentions to produce annual cost savings of GBP150 million by the end of 2009.


Contact Information

  • Amicus
    Ciaran Naidoo
    07768 931 315