Aviva strikes $1bn BPO deal

Insurance giant Aviva is to sell off its offshore operations and outsource $1bn worth of back-office work.

The world's fifth largest insurance group, owner of Norwich Union, struck an eight-year deal with Indian outsourcer WNS Global Services to run its business process outsourcing operations.

More on outsourcing…

♦ Gov't stung by 'rip-off' outsourcing deals

♦ Shell signs $4bn IT outsourcing contract

♦ Cloud computing – the data centre of the future?

♦ Tough bargaining forces outsourcing price cuts

♦  Profile: Nandan Nilekani, co-chairman, Infosys

♦  India losing status as offshore king?

♦ Productivity gains driving IT outsourcing

♦ Tax payer still owed millions by EDS

♦ Cheat Sheet: Offshoring

♦ Special Report: Inside India

Over the next three months about 6,000 staff will be transferred from offshore arm Aviva Global Services (AGS) to WNS, which will take over five AGS centres in India and Sri Lanka.

Aviva will withdraw from running the centres offshore after spending five years building them up.

The company said the move will protect it against rising inflation and fluctuating exchange rates.

It is understood that some areas of work, such as property claim call centres and direct sales, could now be brought back to the UK.

A spokesman for Aviva told silicon.com: "It is a process of simplifying and improving the services.

"We get the benefit of continued supply and expertise but with better protection from inflation and exchange rates. You are taking the risk out of running the contract."

The company says the deal will help it realise aims to streamline the business under its 'One Aviva, twice the value' vision.

WNS, a former offshore offshoot of British Airways, has provided BPO services to Aviva since 2004 and will provide BPO services to Aviva's UK and Canadian businesses under the new deal.

WNS will provide life and general insurance processing functions including policy administration and settlement, finance and accounting, customer care and other support services.

Neeraj Bhargava, CEO of WNS, said in a statement: "We also see significant potential to grow our business with Aviva, not only outside the UK, Canada and Ireland, which AGS serves today, but also in new high growth areas such as analytics."