International retail financial services group Prudential offers a range of products under its own name, its M&G Investments brand in the UK and Jackson National Life in the US. It is now the 100 per cent owner of its online bank Egg, after the company backed away from plans to sell it.
Following the full absorption late last year, Egg’s CIO left the bank. The group itself earlier this year came close to being acquired by fellow financial giant Aviva, which tried to buy the company for £17 billion, but was rebuffed by the Prudential board.
The Pru enjoyed a strong financial performance for its 2005 financial year, with profits up a third. But the company is still going ahead with a plan to pare some £40 million in annual cost savings out of its UK operations by the end of 2007, allied to a March announcement that it plans to harmonise its
global IT infrastructure in a move it expects to save between £20-£25m a year.
As part of that move, the organisation’s current outsourcing deal with Capgemini was reviewed and big chunks of it taken back inhouse as part of a drive to standardise the company’s three global datacentres into one. The outsourcing deal had been set up in 2001 and covered some 80 per cent of the firm’s operations but was due to finish in April 2006 anyway.
Other areas of focus are believed to be a plan to rationalise project and development spend and look for efficiencies in customer services and administration.