The 1000 jobs at risk in Prudential's Stirling operation could be outsourced to UK group Capita, according to a report yesterday.

The 1000 jobs at risk in Prudential's Stirling operation could be outsourced to UK group Capita, according to a report yesterday.

Prudential is said to be seriously considering an outsourcing deal for 3000 life and pensions administration roles as part of its plan to save a further £80m a year in its UK business.

The report suggested that inside sources were "playing down" the likelihood of job losses and pointing towards outsourcing - but with no indication of where employment might be located.

Capita last month took over the life and pensions administration in Glasgow for Resolution, with 1500 of the 1800 jobs transferred to the outsourcing specialist. That deal is likely to remain unscathed in the sale of Resolution to Pearl, agreed last week.

Capita already has one outsourcing agreement with Prudential.

It is eight months since Prudential first revealed the latest cost-cutting plan for a UK business under attack for sluggish performance in contrast with its fast-growing overseas operations.

It said then that 1000 of the 2500 jobs at Craigforth near Stirling, along with 2000 jobs in Reading, Berkshire, and Mumbai, India, would be affected, and outsourcing as well as further offshoring would be considered.

At the company's annual meeting in May, a Unite trade union representative told the board "If it isn't bad enough not to know if you have a job by Christmas, then even if you do have one, you may not be sure who you'll be working for".

He was told only that the board would "reach a conclusion by the last quarter of the year".

Yesterday's report, citing inside sources, said the Pru had been examining proposals from Capita and one other outsourcing company as well as an internal team.

In 2003, the group awarded Capita a contract for the administration of cross-border life and pension policies.

Unite was unavailable for comment.