Aviva announces offshoring plans for 2004

Article date: 2 December 2003

Aviva today announced that it will create around 2500 jobs inIndia in 2004 to service the group's UK and Canadian businesses.The company expects these jobs will be as follows:

  • Around 2350 jobs to service its UK general insurance and lifeinsurance businesses, comprising:
  • Approximately 350 call centre roles

  • Approximately 2000 'back office' administration, processingand IT roles
  • Around 150 administration roles to support its generalinsurance business in Canada

By the end of this year Aviva will have approximately 1200 staffin its offshore operations in India. As a result of theannouncement today, the company will increase this to a total of3700 staff by the end of 2004. Aviva currently employs 59,000 staffworldwide, of which around 33,000 are in the UK.

Aviva anticipates that approximately 80 per cent of the jobscreated in India to support the UK business will be accommodated inthe UK by a combination of expansion, current vacancies,anticipated staff turnover and voluntary measures. Aviva will aimto accommodate the majority of the remaining roles elsewhere in thecompany (approximately 500) by redeployment, although it cannotrule out the possibility of compulsory redundancy.

Offshoring plans: UK

Around 2350 jobs will be created in India during 2004 to serviceAviva's UK business, which trades as Norwich Union. Around 350 ofthese will be in the company's call and claims processing centresin Delhi and Bangalore, dealing principally with motor andhousehold insurance enquiries and claims. These operations are partof a network of call and claims processing centres in India and theUK, where customers' telephone calls are directed to the firstavailable operator. This network also includes the recently-openedpurpose-built call centre in Norwich.

The remaining 2000 roles will be administration, processing andIT jobs. These 'back office' roles will handle administration andsome IT services for the Norwich Union general insurance and lifeinsurance businesses. Staff will be based in Delhi, Bangalore andPune and work will be transferred to these new locations over thecourse of 2004.

Overall these plans will give the company extra flexibility andcapacity for its UK business, while providing further scope toenhance efficiency and continue to deliver a high level of serviceto customers.

Offshoring plans: Canada

Aviva will create approximately 150 new jobs in India during2004 to support its general insurance business in Canada. The staffwill be based in Bangalore and will provide a new salesadministration centre for a range of motor and home insuranceproducts offered by Aviva Canada.

Impact on existing staff

There will be no job losses in Canada as a result of this move.Aviva anticipates that approximately 80 per cent of the jobscreated in India to support the UK business will be accommodated inthe UK by a combination of expansion, current vacancies,anticipated staff turnover and voluntary measures. For example, in2003 the company filled over 4500 UK vacancies that were createdthrough natural staff turnover.

The company has also set up a UK-wide redeployment process,which matches an individual's skills to internal vacancies in theevent of redundancy. Redeployment and relocation assistance will beavailable where a suitable match is identified. The company has setaside £1.5m to provide career advice, retraining and other supportto staff affected by these changes. As a result of these measuresAviva believes that it will be able to minimise the number ofcompulsory redundancies arising from these changes.

Richard Harvey, group chief executive of Aviva plc, said: "Weare operating in an increasingly competitive environment. Ourcustomers want value for money products and high levels of serviceso it is vital that we continually explore opportunities to improveour efficiency while maintaining service levels. Our staff in Indiaare an important part of this process and our experiences to datehave been positive.

"Making decisions that will affect our staff is always tough,but by taking action to remain competitive we will secure along-term future for our business and therefore the majority of ourpeople. Through our UK-wide redeployment process staff will havethe best possible opportunity to find other roles within our groupthat match their skills."

Over the course of 2004 Aviva will continue to assess whatfuture application offshore operations could have to other parts ofits business.


Media contacts:
Hayley Stimpson, director ofexternal affairs +44 (0)20 7662 7544
Sue Winston, head of group media relations +44 (0)20 76628221
David Ross, media relations manager +44 (0)1603 683820
Alex Child-Villiers, Financial Dynamics +44 (0)20 7269 7107

Notes to editors:

  • Aviva is the UK's largest insurer and one of the top-five lifecompanies in Europe with substantial positions in other marketsaround the world, making it the world's seventh-largest insurancegroup based on gross worldwide premiums. In the UK Aviva operatesunder the Norwich Union brand.
  • Aviva's principal business activities are long-term savings,fund management and general insurance, with worldwide premiumincome and retail investment sales from continuing operations of£28 billion for the year ended 31 December 2002, and assets undermanagement of more than £200 billion at 31 December 2002.
  • Aviva will work with a range of suppliers during 2004 in theprovision of its offshore services.
  • The jobs created in India to support the UK business will beapproximately two-thirds in support of the general insurancebusiness and one-third in support of the life business.
  • Aviva also has a life insurance joint venture in India, AvivaLife Insurance Company India. Launched in 2002, the company is ajoint venture between Dabur, one of India's oldest and largestgroup of companies and Aviva. It employs around 450staff.
  • The Aviva internet media centre is atwww.aviva.com/media.

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