Royal London names IBM tech partner as IT staff brace for cuts
- Royal London has appointed IBM as its strategic technology infrastructure partner.
- Royal London plans hundreds of IT job cuts and a shift to India, sources said.
- Redundancies are expected by the end of December, The Register’s sources said.
- Royal London’s first-half 2026 adjusted operating profit rose 13% to £187 million.
LONDON, UNITED KINGDOM — Royal London, the UK insurance and pensions mutual, has appointed IBM as its strategic technology infrastructure partner, and its IT staff are bracing for redundancies.
The customer-owned insurer says it will stay accountable for service delivery and regulatory requirements under the partnership.
A substantial share of tech operations
Royal London plans to cut hundreds of IT jobs and shift work to India under the IBM deal, according to sources cited by The Register in a report published Nov. 5. The sources said redundancies are expected by the end of December.
Chief technology officer James Sandell told IT staff in September that the company was partnering with IBM to outsource a substantial portion of its technology operations, the sources said. A consultation process was expected to follow.
“Royal London has appointed IBM as its strategic technology infrastructure partner as it continues to develop its technology strategy,” a Royal London spokesperson told the publication. “The partnership will give Royal London access to IBM’s specialist capability, scale and experience.”
Jobs at risk remain unclear
The exact number of jobs at risk is unclear, though an Oct. 6 Glassdoor review claims hundreds of positions in the technology operations division are being eliminated. The reviewer warned that “a vast amount of knowledge is being lost by the business.”
In its reply to the review, Royal London acknowledged that its transformation “has raised questions and concerns for some colleagues,” but did not comment on the claims about outsourcing and redundancies. Another review, posted Oct. 20, claimed the IBM deal followed an earlier move to transfer servicing jobs to South Africa.
An Oct. 12 reviewer who identified as an IT infrastructure employee wrote: “Sudden outsourcing goes against all Royal London values.” Other reviews questioned the company’s commitment to its mutual values, The Register reported.
Cuts follow rising profits
Royal London reported adjusted group operating profit of £187 million ($250Mn) in the first half of 2026, up 13% from a year earlier. Chief executive Barry O’Dwyer highlighted in August the £199 million ($266Mn) distributed to eligible customers through ProfitShare in April.
“As a customer-owned business, when we do well, our customers share in that success,” O’Dwyer said at the time.
What it means for buyers
The deal hands infrastructure to a global provider with offshore delivery while Royal London keeps regulatory accountability in-house. The insurer says it remains accountable for service delivery and regulatory requirements.
Firms weighing information technology outsourcing (ITO) or offshore outsourcing can compare providers on OA’s list of the top BPO companies worldwide.
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