in the global business process outsourcing (BPO) market, UK insurer
Aviva has sold its offshore life and general insurance processing
unit, Aviva Global Services (AGS) to Indian BPO specialist WNS
Global Services for £115 million ($228 million). Under the terms of
the deal WNS will provide processing functions including policy
administration and settlement, finance, accounting, customer care
and other support services for Aviva’s UK and Canadian operations
for eight years and four months.
The sale of AGS and the BPO contract with WNS worth a total of $1
billion over its life marks a notable change in Aviva’s strategy.
This strategy was originally based on the concept of contracting
Indian BPO specialists to establish offshore outsourcing units,
operate them initially and then transfer them to Aviva.
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The AGS operations which WNS has acquired were originally
established by WNS on a build-operate-transfer contract entered
into with Aviva in 2004. The first of these operations was
established in Pune, India and the second facility in Columbo, Sri
Lanka. In addition to AGS’ unit established by WNS, WNS has
acquired units run by other service providers in Pune and Chennai.
In total 5,800 AGS staff members will transfer to WNS.
Commenting on the deal with WNS, Cathryn Riley CEO of Aviva’s
Norwich Union Life unit and AGS’s chairman, said: “During the
selection process, we evaluated some of the best BPO providers in
the global marketplace and selected WNS based on their proven
operational performance and alignment of both culture and
values.”
WNS was established in Mumbai, India in 1999 by British Airways
with control acquired by UK-based private equity firm Warburg
Pincus in 2002 and remains its largest shareholder. WNS listed on
the New York Stock Exchange in July 2006.
