Royal London plans IT outsourcing shake-up as staff brace for redundancies

IBM partnership and job cuts

Sources say Royal London intends to reduce its IT workforce by hundreds and shift work to India as part of an agreement with IBM. Redundancies are anticipated before the end of December, though the precise scale of the cuts has not been confirmed.

Chief technology officer James Sandell reportedly told technology staff in September that IBM would take on a substantial share of the company’s technology operations. A consultation process was expected to come next.

Royal London described IBM as its strategic technology infrastructure partner. The company said it would remain responsible for service delivery and regulatory obligations, while seeking to maintain customer service continuity and quality.

Staff raise concerns

An October 6 Glassdoor review alleged that hundreds of roles in the technology operations division were being removed. The reviewer warned that the business could lose extensive expertise, including knowledge that had not been documented.

The reviewer also questioned whether managers understood the effort needed to transfer operations to IBM, given that teams were already under pressure. Royal London responded that its transformation had prompted questions and concerns among colleagues, and pointed staff to internal channels for raising them.

Other October reviews criticized the outsourcing plans and questioned their fit with Royal London’s mutual values. An October 12 reviewer identifying as an IT infrastructure employee cited a hiring freeze and possible additional reductions, while an October 20 review referred to an earlier transfer of servicing work to South Africa.

Profits and mutual ownership

The job plans come after Royal London reported a 13 percent year-on-year increase in adjusted group operating profit, reaching £187 million in the first half of 2026. The company announced those results in August.

Chief executive Barry O’Dwyer said eligible customers received £199 million through ProfitShare in April. He said the mutual’s customers share in its success because the business is customer-owned rather than owned by shareholders.