IT staff at Aviva face an uncertain future after the UK’s largest insurer announced that it would create around 2,500 jobs in India to provide IT and administrative services.
Around 400 IT jobs – involving application development, user support and testing - will be established in India to support Aviva’s general insurance and life businesses.
The number of IT job losses is not yet known, but Aviva said that at least 80% of UK job cuts could be made without compulsory redundancies.
Aviva joins a growing band of UK companies, such as Goldman Sachs, Somerfield and BT, which have relocated IT operations overseas to reduce costs.
Alex Robinson, IT director of general insurance for Aviva, told Computer Weekly that its Indian operations would help cut costs and plug skills gaps in its 3,000-strong IT workforce in the UK.
“The main advantage we see is in extending the flexibility of resourcing for IT,” he said. “[It will allow us] to get hold of skills at short notice or get skills we don’t have, such as legacy insurance systems, and newer skills such as web services.”
Robinson added that Aviva could not rule out moving other parts of its IT offshore, but said that it had no plans to do so at the moment.
“In-house IT remains very important part of our business,” he added.