Aviva to cut India operations

Aviva to cut India operations
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First Published: Mon, Mar 03 2008. 10 54 AM IST
Updated: Mon, Mar 03 2008. 10 54 AM IST
PTI
London: British insurance company Aviva, which is one of the major firms outsourcing work to India, is considering selling two of its four companies in India.
A strategic review of the company’s four India operations is currently on. It is expected to lead to Aviva cutting its stake in two businesses or their sale, raising nearly 290 million pounds.
Aviva, along with its rival Prudential, has outsourced much of its back-office operations to India in recent years.
It has retained its India operations even as complaints from customers led some British companies to revert their operations to Britain.
In December, for example, Travelport Group, the travel-services business owned by buyout group Blackstone, sold its Indian back-office operation, to Intelenet Global Services Pvt Ltd, a Mumbai-based company, according to The Telegraph.
Analysts say that Aviva cutting down its operations and the rising labour cost in India for such activities is expected to lead to a slowing down of the outsourcing trend to India.
The rising costs in India are beginning to reduce the potential benefits for Western companies, analysts claim.
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First Published: Mon, Mar 03 2008. 10 54 AM IST