UK insurance major to outsource jobs to India


London : British insurance major Resolution has announced plans to outsource a number of jobs to India as part of a deal with support services company Capita to reduce costs.

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Resolution, which manages funds for Scottish Mutual, Scottish Provident and Phoenix Life, said in a statement: "It is not appropriate to move any customer facing roles, voice contact or customer data to India."

Resolution's chief executive Mike Biggs said: "We are working very closely with Capita to ensure that any redundancy impact on our staff is minimised."

Daryl Williams of Unite said the union was "deeply disappointed" by Resolution's decision to outsource and offshore a significant number of jobs to India."

The changes arise from a larger deal involving 2,000 Resolution employees, most of them in Glasgow, who will shift to Capita which will take on administration work involving 4.5 million policyholders.

A spokesman said that Capita intends to offer jobs elsewhere in its organisation to Resolution employees who would otherwise become redundant.

He said: "Capita has a lot of activities in the region and staff that cannot be placed will be offered work in them. They may not continue to work in Resolution, but the hope is that they will be found other work in Capita organisations in the region."

As part of the deal, around 2,000 Resolution staff, 1,550 in Glasgow and 450 in Birmingham, will transfer to Capita. Most of the Birmingham jobs will move to Glasgow.

Jobs moving to India will involve customer service and IT roles.

Resolution has plans to invest 140 million pounds in merging its customer service and IT processes, aimed at delivering cost savings of pounds 20m a year.

Paul Pindar, Capita's chief executive said the contract, worth about 580 million pounds, was Capita's largest ever and "consolidates our position as market leader in this particular segment."