Friends Provident outsourced its IT services to IBM yesterday in a £200m deal to cut costs by £6m a year. The company said the move was part of plans to save £40m a year. The contract, due for completion in March 2009, means 200 of Provident's employees will transfer to IBM. Friends has struggled to compete after a collapse in the pensions business in the past year. In the summer it angered policyholders by cutting payouts on with-profits pension and life plans. Trevor Matthews, chief executive, said the IBM deal would help to make the company "leaner, fitter and a more efficient business". Phillip Inman