UK insurance giant Royal & Sun Alliance is to offshore some 1,200 back office and call center jobs to India over the next two years.
The positions will be transferred to India from Royal & Sun Alliance (R&SA) and its More Th>n division.
CEO Duncan Boyle said in a statement: As far as possible the reduction in UK jobs will be managed through natural turnover and redeployment. We have kept our people informed at all stages and have fully consulted with our union partners and will continue to work closely with them over the next two years.
Through the move R&SA expects to achieve cost savings of 10 million pounds ($17.8 million) annually. The announcement follows a six-month pilot project the company started in March 2004, covering More Th>n motor sales, servicing, and claims processing. That project involved some 100 operatives in India.
This is the latest move by insurers in the UK market to offshore BPO functions. Rival Norwich Union plans to move 760 jobs to India next year, with 190 moving to Sri Lanka, building on the 3,700 jobs it has already moved. Parent company Aviva plans a long term offshore strategy to increase the number of IT, call center, and back-office jobs in low-cost locations to 7,000 over the next two years.