More Standard Life jobs go to India

STANDARD Life is to outsource 50 more jobs to India and cut 15 management positions at its health insurance arm as it axes costs ahead of demutualisation in 2007.

Details of the savings were outlined in a memo that was sent last week to the 500 employees of Standard Life Healthcare, based at the company's offices in Guildford, Surrey, and Stockport, Greater Manchester.

Chief executive Sandy Crombie's aim is to reduce operating expenses by 11.6% ahead of flotation. Last year, they were £64.2 million.

Standard Life Healthcare, which provides health cover to more than 425,000 customers, began the outsourcing of general administration to Bombay two-and-a-half years ago, transferring 70 jobs.

Since November, it has been piloting the outsourcing of individual healthcare policy administration.

The trial has been hailed a success, triggering the decision to transfer the 50 jobs to India. Corporate policy administration is also likely to follow.

On Friday, a spokesman for Standard Life said that no redundancies would result, and that people dealing directly with customers would remain in the UK. Compulsory redundancies in management would be kept to a 'a minimum'.