Companies Continue To Outsource
Insurance giant Aviva is reportedly poised to outsource hundreds of jobs to third-party
provider Capita, with more expected to be transferred to the UK.
According to the Sunday Business Post, 400 of Aviva Irelands 2,000-strong workforce are likely to be outsourced as part of an attempt to make efficiency savings; rivals including Prudential and Zurich have signed similar deals with Capita in the past.
In addition, a further 600 jobs are expected to be relocated to Britain. The Unite trade union has asked for clarification and indicated that it views outsourcing as the least worst alternative, as it would at least help to protect jobs, including freelance jobs.
This ongoing review is the right thing for our business. We want to minimise the impact on our employees and, to do that, we need to give ourselves the time to fully complete it, said a spokeswoman for Aviva Ireland.
Last month, Capita announced plans to find a freelancer and consequently create a total of 336 new jobs at its Belfast base over the next four years, having made around 100 workers at the Clarendon Dock office redundant 18 months ago.
A British subsidiary of Indian outsourcing giant Tata Consultancy Services (TCS) has won a contract to oversee pension administration at insurance giant Friends Life, too, adding to the amount of companies that have chosen to outsource over the last year or so.
Business process outsourcing provider Diligenta will assume responsibility for 3.2 million Friends Life pensions over a 15-year period starting next March. Friends Life is looking to put much of its IT and customer service functions out to tender as it concentrates on the retirement income, corporate protection and benefits markets.
Our domain-centric, platform-based solutions enable us to help companies transform their businesses, TCS chief executive N. Chandrasekaran said in a statement. Our strong presence in the insurance segment, track record and the early investments in building products and platforms have contributed to this.
Mr Chandrasekaran added that TCS does not expect to endure a loss-making period as the arrangement is implemented, insisting that the company anticipates revenues to flow in from the next quarter of the financial year.
Earlier this week, the Department for Work and Pensions announced that it had recruited Accenture to provide application services as part of the move to the new Universal Credit, which is set to replace six means-tested state benefits.
According to The Guardian Newspaper, it seems that British companies are increasingly choosing IT outsourcing options within the UK, with the report saying that whilst going local with outsourcing IT infrastructure might initially seem counter-intuitive, the perceived risks and concerns about regulation and compliance are far fewer.
The Guardian believes that while cloud computing and IT outsourcing as a strategy is perceived to be simply about price and cutting costs, the importance of how data is stored is just as important.
Journalist Bobby Johnson writes: If your data is stored by British companies in British data centres, there are fewer concerns about regulation and compliance. But British and companies can be sure, for example, that their information will not be subject to laws in different jurisdictions.
by: Tim Bisley
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