Aviva set to foray into Indian BPO sector

By agencies   |   Tuesday, 17 January 2006, 20:30 IST
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MUMBAI: The worldÂ’s sixth largest insurance company, Aviva, is set to enter the Indian BPO sector. The U.K.-based firm is going to buy a majority stake in a Bangalore-based BPO Company 24/7 Customer. This facility would be called Aviva 24/7. Aviva's deal with 24/7 is based on the build, operate, transfer (BOT) model. This gives Aviva the option to acquire the operation, including staff, from 24/7. The 1,700-seat Bangalore facility has been valued at around $25 million. Aviva's right to exercise the option to buy is coming up in June. They will buy a majority stake in the 24/7 subsidiary. Aviva will give some equity stake to 24/7 Customer to keep them accountable for the organization and maintain the quality of services. However, the company did not disclose the exact equity stake that Aviva is going to buy. The company has made it clear that Aviva would apply a BOT model for its offshore operations. 24/7 customer's offshore strategy remains unchanged. Its relationship with Aviva involves transfer of its call center to them at a mutually agreed date. Aviva's business processes and IT outsourcing operations in India and Sri Lanka are managed by Aviva Offshore Services in Pune.