Standard Life Healthcare is to expand its Indian offshore operation by 50 seats and phase out up to 15 management positions.
The measures, together with improving IT capacity, are designed to cut costs by 11.6% by the end of 2006.
The 50 extra seats will increase the insurer's offshore capacity in India to 120, mostly in administration and IT roles.
A spokesman for Standard Life Healthcare explained that the offshoring would not result in redundancies in the UK, while the majority of the 15 management positions to go would be through natural wastage. Staff who deal directly with customers would remain in the UK, with back office functions moving offshore, the spokesman said.