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By | Tim Richardson 16th September 2005 10:25

Zurich in talks with Capita

'Potential business relationship'

Capita - the UK IT and business services group - is holding top level talks with insurer Zurich concerning a "potential business relationship".

Details of any deal have yet to be disclosed although staff at Zurich have been told that discussions are underway and that they will be kept informed over the next couple of months.

In a statement released to the London Stock Exchange (LSE) yesterday Capita said the talks "involve assistance with certain operations and business processes within Zurich's UK life business".

A spokeswoman for Zurich declined to release any further detail to comment on how many jobs would be outsourced to Capita or even offshored overseas. She also declined to say whether IT jobs were in line for a switch.

Instead, she directed us to the Capita statement which said: "A comprehensive assessment of the proposal and scope of operations for inclusion in any arrangement will be undertaken over the coming months. This could result in a material contract being awarded to Capita, the value of which will be dependent on the scope and scale of services transferred."

Capita was asked to comment on the announcement but failed to return call by the time of writing. ®

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