IT services provider, HCL Technologies Ltd., has signed a service contract with Equitable Life Assurance Society (Equitable Life) worth £120m. HCL has to manage core processes and support activities that are required to run Equitable Life’s closed book of accounts. The contract will start in March 2011.

The main services that HCL has to provide as part of the contract are policy administration, finance, actuarial services, IT operational support and call centre services.

Chief Executive of Equitable Life, Chris Wiscarson said that this contract is an important step in helping the policyholders to restore their savings. He also said that this is one of the most important decisions in Society’s history.

Equitable Life expects to save approximately £8 million in the first year with the help of this outsourcing. In the long run Equitable Life is expected to make future savings and reduce around £100 million from future costs.