Aegon Outsources 800 Administration Jobs to Atos; Extending Partnership
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Based in Edinburgh and a firm specialising in pensions and investments, Aegon has recently entered into a 15 year partnership with IT Company Atos, strengthening the pre-existing relationship. The terms of the agreement state that Atos is now responsible for the administration of services to 1.4 million of Aegon’s customers with various policies. It has however also been revealed that this only applies to non-platform consumers. All platform policies and schemes across Aegon Retirement Choices, Aegon Platform, TargetPlan, Aegon One Retirement, Retiready and its institutional platform will all be administered and supervised by Aegon themselves.
Annual run-rate expense savings for Aegon are initially expected to be within the range of £10 million. Over time, growth is predicted to reach up to £30 million. When accounting for total transition and conversion charges, the amount is predicted to reach approximately £130 million, all within the first three years of the partnership.
There was a great deal of concern initially; that the jobs would be moved out of the country to an overseas location however news of the partnership with Atos alleviated these fears. There was a lot of relief for the trade union representing Aegon employees as the news broke and confirmed that 800 UK jobs would not be shifted out overseas as the administration services would be handed to Atos.
Aegon seems to hold Atos in very high regard as the firm’s contributions to Aegon are being expanded with this deal. From 2016, Atos was given the responsibility of servicing and administrating 500,000 of Aegon’s protection customers. Additionally, it’s been said of Atos that it has “an excellent understanding of Aegon’s business, culture, and ways of working.”
Chief Executive of Atos UK and Ireland, Adrian Gregory has stated that they are excited to embark on this new phase with Aegon with the intention of blending “existing talent with tailored innovative technologies.” He also spoke of this partnership signifying Atos’ own growth and expansion as it becomes a more visible entity in the “broader financial sector.”
General Secretary of Aegis the Union, Brian Linn has also discussed the partnership in positive terms. He states that it’s beneficial to Aegon that they reviewed some logistical and infrastructural matters. He added that the deal with Atos is extremely favourable as it guarantees job security along with an increase in opportunities for their employees. Additionally it removes the need for relocating these jobs to overseas locations.