Prudential is outsourcing its mainframe and mid-range information technology services to Cap Gemini Ernst & Young. The five-year contract is valued at £55m.

Under the deal, Cap Gemini Ernst & Young will take over responsibility for Prudential's UK data centre at Theale near Reading.

Prudential chief executive Alan Cook said: “By moving to an outsourcing solution, the Prudential will achieve significant cost reductions while maintaining the highest levels of service quality. We will also benefit by introducing greater variability into our IT cost base.”

About 90 Prudential staff at Theale and other locations will transfer employment to Cap Gemini Ernst & Young.