The new contract will give Friends Provident greater flexibility and cost certainty through the use of an 'outcome-based', fixed price engagement model and is extendable at the option of Friends Provident for an additional two year period. The deal enables Friends Provident to procure discrete IT services in variable quantities over the term and will achieve estimated cost savings of up to £16.5 million over five years commencing in 2010.

Andy Jackson, director of IT at Friends Provident said: "The new contract negotiated with Wipro gives Friends Provident more flexibility to manage resource levels while retaining control and making significant cost savings. Friends Provident remains committed to the service that it provides to its customers, clients and partners, and we are confident that this new arrangement will lead to overall service improvements."

Ajoy Menon, Global Head of Insurance Solutions at Wipro said: "Wipro have had a successful and mutually beneficial strategic partnership with Friends Provident for eight years spanning IT and Business Process Outsourcing. The new contract enables Wipro to offer increased value to Friends Provident in an outcome based engagement model through process excellence, higher offshore leverage, and greater accountability and ownership in delivering projects. Our partnership supports variable demand across IT and will enable Friends Provident to focus on their core value propositions and customer service excellence. Wipro estimate that if the contract is extended to 5 years, this will produce a revenue of £40 million over that period."