Hcl Technologies has signed a $200 million (Rs 940 crore) contract with British insurer Equitable Life for providing end-to-end solutions to the latter, including policy administration, finance, actuarial services, IT operational support, quality assessment, data management and call centre services. The contract, which starts in March 2011, runs for 30 years, but the bulk of the revenue will flow in the first eight years.
The deal is expected to help Equitable Life save about £8 million (Rs 61.6 crore) in costs in the first year. Moreover, the transaction will place over half a million policies under administration with HCL IBS, which is HCL’s UK-based life and pensions administration business. Future savings and predictability of costs mean Equitable Life can reduce its provision for future costs by an amount in excess of £100 million. Around 240 of Equitable Life’s employees would be made redundant as a result of the contract, some of whom could be taken on HCL’s payroll.