Prudential targets £25m per year IT savings

Financial services group Prudential is aiming to save up to £25m per year by creating a single global IT infrastructure and support operation across its brands.

The project is part of a corporate review to create more synergies across the group and comes as Prudential finally put an end to its attempts to sell internet bank and credit card company Egg.

Announcing strong third-quarter results Prudential chief executive Mark Tucker said the company will keep its 79 per cent stake in Egg and is considering buying out the remaining 21 per cent minority shareholders.

Tucker outlined plans for the Prudential to maintain its federal structure with each business unit retaining a degree of autonomy but he said there needs to be more collaboration at the operational level.

The three main areas where material cost savings have been identified across the business units are capital management, risk management and IT, and Tucker said work is already underway on creating a single global IT infrastructure that should save the organisation £20m to £25m per year.

That includes a review, already underway, of the Prudential's data-centre services for its UK operations, which are currently outsourced to Capgemini.

At the Prudential's financial results presentation, Tucker said: "I think what we will look to do differently is work much more collaboratively and closely together - be it in the UK or globally - on a number of different activities.

"On the IT side rather than having three data centres that are independent of each other [it will be about] being able to work on a 24-hour basis across the globe. That will bring significant savings to us."