Insurance giant Aviva is to sell off its offshore operations and outsource US$1 billion 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.
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 centers in India and Sri Lanka.
Aviva will withdraw from running the centers 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 centers and direct sales, could now be brought back to the United Kingdom.
A spokesman for Aviva told ZDNet Asia's sister site 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 realize 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 U.K. 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 [United Kingdom], Canada and Ireland, which AGS serves today, but also in new high growth areas such as analytics."
Nick Heath of Silicon.com reported from London.
Play video
There are currently no comments for this post.