ZURICH Financial Services has entered negotiations with a computer firm about outsourcing some of its backroom staff.

In February, Zurich, which employs about 700 people in IT in Swindon, announced it was looking to streamline the application section of its computer department.

It said it wanted to be more flexible in meeting business needs, and responding to new priorities.

In February there were three companies being considered Computer Sciences Corporation, IBM, and Accenture.

Now it has started negotiations with CSC, which has headquarters in El Segundo, California.

Zurich also announced in March that 450 jobs would go in this country. The Swindon and Cheltenham offices are expected to bear the brunt of the job losses.

Meanwhile, Zurich has appointed David Sims as chief executive officer of the UK life Insurance Business, subject to regulatory approval. Mr Sims, 46, will report to Paul van de Geijn, CEO of the Global Life Insurance Business.