Insurance giant Prudential is already using 200 Bombay-based staff to carry out financial accounting, analysis and risk-profiling work on behalf of the insurer in the UK, Europe and in Asia, The Times reported.

At the same time it is considering eventually shipping its accounting, actuarial and underwriting work to Bombay.

The move could save the insurer millions of pounds in wage costs, but would put British jobs at risk.

Mark Tucker, Prudential chief executive, has put 2,000 UK jobs and a further 1,000 overseas positions under review as part of an efficiency drive aimed at saving £195m a year in costs by the end of the decade.

Further reading:

Prudential may be mulling offshore move

Lloyds TSB snubs IFRS for embedded value