Standard Life is to cut 69 IT jobs and may outsource another 17 employees to telecommunications group BT in a cost-cutting drive, it said on Tuesday.

The proposed changes will ensure greater synergies, greater capacity to serve our customers, and provide clarity of roles for our people, a Standard Life spokesperson said.

The affected workers are based in Standard Life's home city of Edinburgh, Scotland, the insurer said.

Standard Life, Britain's fifth-biggest insurer, earlier this month cut 95 jobs at its UK customer service division as part of a plan to take out 100 million pounds of costs by 2012.

The cost cuts are designed to partly offset a programme of investment in new products and technology which looks set to cost the company 200 million pounds this year and 180 million pounds in 2012.

Standard Life shares were up 1 percent at 196.3 pence by 3:40 p.m., outperforming a 0.2 percent rise in the FTSE 100 share index.

(Reporting by Myles Neligan; Editing by Helen Massy-Beresford)