Standard Life Aberdeen To Outsource IT Department

on Oct 12, 2019
Updated: Mar 11, 2020

According to the Edinburgh Evening News, the financial services giant, Standard Life Aberdeen, has directed its IT staff that there are plans of outsourcing the IT department. Cognizant, an IT services company based in the United States of America has been chosen as a potential candidate for outsourcing.

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The announcement was made public on October 10th, 2019. It was originally reported by Edinburgh Evening News that as many as 320 employees will be let go if the business continues with the implementation of the outsourcing plan. However, the officials at the Standard Life Aberdeen have rejected the estimate.

As per the business itself, 42 contractors and 5 permanent staff members can be expected to be dismissed once Cognizant takes charge of the IT department for Standard Life Aberdeen. The officials were also reported to have stated that as many as 27 of the current staff members are likely to be shifted to Cognizant.

Cutting Down Jobs Was Preplanned As A Component Of The Merger

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Aberdeen Investment and Standard Life agreed on a merger back in 2017. The company has also announced that an estimate made at the time of the merger had already quoted around 800 jobs which could be expected to be jeopardized as the two businesses proceed with the merger. Letting go of the IT department was preplanned as a component of the merger that took almost three years to be realized completely.

While the exact figure for how many jobs are being lost wasn’t declared by Standard Life Aberdeen, a spokesperson for the company stated in an interview with Edinburgh Evening News that they intend to shift as many full-time employees to Cognizant as possible. Outsourcing IT services is not only aimed at enhancing the infrastructure but also to optimize customer service in the long run.

Contractors Will No Longer Remain With The Company

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On the following day, October 11th, 2019, Standard Life Aberdeen held a press conference in the morning and made it clear that 27 of the full-time employees being transferred to Cognizant will still be able to serve their duties from Edinburgh, Aberdeen, and London. However, the contractors who have completed the projects handed over to them with success will no longer remain with the company.

Standard Life Aberdeen has been active in reiterating that outsourcing will revolutionize their IT platforms which will work in the best interest of the business in the long run. While it’ll take some time, it will surely enable them to get the most out of the merger signed earlier.


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