Lloyds has kicked off an external tender process for select litigation work at the bank after a raft of redundancies in its in-house team last month.

The bank is looking to outsource some of its higher-volume, lower-cost litigation work after slashing 25 lawyers from its litigation team in April.

It is understood that firms pitching for the work include TLT, Pinsent Masons and Ascent, Irwin Mitchell's debt collection, litigation and recovery services arm.

One partner familiar with the process added: "I think you'll see a whole host of firms from across the tiers going for the work."

Some firms on the bank's core panel, however, including Allen & Overy and Linklaters, have not put themselves forward for the tender race.

Ascent is understood to have hired 39 field representatives – who conduct home visits across litigation and arrears work – from Lloyds last year. Ascent's parent firm, Irwin Mitchell, Pinsent Masons and Reed Smith all have spots on the bank's litigation sub-panel.

An outcome of the tender process is expected in the next few months, though sources say there is no formal date for completion of the competition.

The in-house redundancies at Lloyds were put in place to "introduce a more streamlined and efficient operating model aligned with business needs", according to the bank.

The 25 job losses mainly affected the bank's offices in Hove and Cockfosters, where staff principally handle low-value claims.

A bank spokesperson ruled out further cuts to its litigation team or cuts to any other in-house legal function.

Lloyds declined to comment on the tender race.